Does your insurance cover Covid19? How much risky it is to travel in public transport? How to ensure the high-risk people like children and elderly remain safe and healthy? There are numerous questions picking our brains every now and then.
It is more than 90 days that India is under lock-down, various sectors are gradually opening up for business. We are all more alert than ever, taking hygiene and precautions on priority. I visited the office other day, our coffee machine is closed. We didn’t use the microwave to heat our food, used the water dispenser shakily. Yes, it is taking lot of efforts to do normal activities without being afraid. However, we will move on.
Given all things, Covid-19 still doesn’t have any medicine and it remains highly infectious. Various work will force will take us out of comfort and safety of home, exposing us to Covid19. Least we can do is prepare. Apart from the usual hygiene and safety related guidelines, following are additional things we need to ensure
Most of the health insurance policy covers Covid19, still check with them
Keep equivalent of atleast 3 months expense safe in a deposit account/ liquid fund/ at home for a few months
Came across this policy and found it very useful in days like these. That is Reliance General Insurance’s Covid19 policy, specially designed for YES Bank Customer.
This is not a mediclaim or health insurance plan. This plan aims to cover the financial loss which may arise upon diagnosis or official quarantine by medical authorities.
It covers a possible financial loss, which may occur due to detection or quarantine . The policy covers babies from 3 months till 60 years adult. The premium for Sum insured of Rs. 1,50,000/- for a period of 1 year is Rs,2213 . The premium for sum insured of Rs. 2,00,000/- is Rs. 2950 Diagnosis Cover – Full sum assured
Quarantine Cover – Half of sum assured
Policy Period – 1 Year
Who should Take this policy?
This should be taken by earning member of the family especially if you have ongoing loans like – Car loan/Home loan/having high expenses. If you are staying in Mumbai, where healthcare cost is going out of hand, it would be good idea to protect against abnormal cost/ financial loss may happen on diagnosis/ precautionary quarantine. This is highly recommended for sole earner with many dependants, who don’t have adequate health insurance or have a job loss risk or have to visit other cities/ states/ countries soon. Highly recommended who have less contingency fund with dependent children or senior citizen parents.
What this Covid19 Insurance policy doesn’t offer?
This is mainly a cash benefit policy, doesn’t cover medical expenses, it just offers lump sum benefit. It doesn’t offer any tax benefit under section 80D. It doesn’t cover new born babies upto 90 days and anyone over 60 years. It doesn’t cover if you are any of your family member or close associate is currently suffering from Covid 19 or under quarantine. Won’t cover anyone who have met any Covid-19 affected person in last 15 days. Policy Won’t cover anyone who have traveled to international destination in 45 days immediately preceding this Insurance Cover Period Start Date. The applicant should not be currently living with and sharing the same address as that of person(s) who is/were Diagnosed with COVID-19 or Quarantined
There is one moreCovid-19 Cover for YES Bank DEPOSITORS
YES Bank has also launched a facility for Fixed deposit holders of YES Bank. On a Fixed-deposit of Rs. 1 Lakh and above for a tenure more than a year will get an cash benefit insurance. With no-extra premium, the cover is Rs. 25,000/-
Covid 19 is here to stay for a while and create chaos until we get a proper vaccine. So, stay safe, stay healthy and keep learning wealth management.
Want to be financially literate? Try these books. Have been very helpful to me.
The cost of the 5 books combined is below $20, but, this investment promises infinite returns. Read them before you take the next online course. You can listen to the audiobooks with free trial on Audible app for first month.
Why this post? This post is for budding, aspiring entrepreneurs who are searching for what books to read, the employees who want to start something on their own, for a small startup entrepreneur who is looking for books for some guidance, who are looking to build a lean startup leaving the cushy jobs.
They say, all leaders have few things in common, one of them are – Most business leaders are voracious readers. Well, from personal experience I can say, I have learnt half of world history, connected dots between economy, society, religion and human psychology through hours and hours of book reading and listening. And I found out, the “Best books” tagged in shelves and Amazon listings are there for a reason.
These books are for people from any walks of
life at any stage of career or personal lives, ideal for students, entrepreneurs, mid-level executives, top-level executives, it can add value to each reader. Request you not to source entrepreneurship book PDFs – get the original business books.
In past few months, we are living in a time of time of lockdown, mid-march 2020 onwards the world has literally shut for “Human activities”. The pandemic is unprecedented, with millions of people falling sick, hundreds and thousands of death, major sectors like aviation, hospitality, travel shut for months, and other sector crawling to survive, it does picture a gloomy present. However, we can also see the upsurge of social media activity, offices fitting into Zoom calls, school and colleges running with video classes, people taking a break from travel-busy schedule slipping into schedules of cooking, meditation, binge watching and online up-skilling. Oh yes, I have taken a few too. I liked the Coursera course on Finance for non-finance executives, many more which I felt was petty average. I also utilized my to browse through my collection of books and audible audio books. I must say, that Rs. 199/- monthly subscription is like multiple online courses squeezed into one.
I love discussing personal finances, for enhancing value of money. The experience I have gained by book reading and listening everyday for more than one hour each day is unbelievable. Each book I am listing down has many important lessons, each book is like a short business course, so much information, insights and words of wisdom squeezed into each one, that I have read each book at-least twice. I can go on and on praising the books, but without anymore words let me share a glimpse of my favourite books and few points I can’t just take off my head.
Important Lines – Intelligent people hire people more intelligent than themselves. The Rich Don’t work for Money. Rich Invent Money.
Review – This book is a handbook for aspiring business owner. It attempts to sow a seed of entrepreneurship in every reader’s mind. The 9 hours audio book is a commitment of the writer to take the readers off the life off the rat race and put on a fast pace of riches, a true book, one packed life changing session on financial literacy. The book starts with anecdotal reference as goes the title, what a rich dad teaches his kid which poor dad doesn’t. The Nine chapters in the book takes on through a very realistic narrative. The best part of the book is the short summary, and set of question for reflection and action. Rich Dad Poor Dad is worth more than a 10 hour webinar, it is an life time asset.
Other notable books by the author – The Cash Flow Quadrant, Fake
Think and Grow Rich (First Book dedicated to entrepreneurship spirit)
Review – Originally published in 1937, this book came in way early and have inspired big writers including Robert Kiyosaki and many other writers who have focused on power of thoughts. The author claimed to do a thorough research on the rich people of his time and came up with this brilliant book. This book emphasizes on power of thought, determination and planning in human. Through the chapters he has given reference to various individuals who changed their entire lives. The book written in simple English, in a series of guidance which can help on take required steps to achieve the goals of their lives. A must read, and should be repeatedly read and use the pointers to make into a personal diary to help improve upon own life. Think and Grow Rich needlessly one of the best-selling book of the century across continents.
The line I liked the most –“See what can be, not just What it is”
Review – “I’ve got a good news” The 9 hour and 30 minutes audio in simple English, this book is a fresh air in a mundane life. A book written for all, if you are 15 or 85, you will like equally. As the title goes, IT prompts us to thinking bigger, acting bigger and live bigger life. It does give clear demarcation of a successful, average and sulking people, all based on the attitude they carry. Each line inspires you take those small step which can make you more attractive, loveable, warm person be it any area of life, it can sprinkle magic each area. This book shouldn’t be read once, this should be read multiple times in regular intervals to lift you up to new space of success and pleasant life. You will easily be able to level up your life just by applying a few suggestion in your life. The Magic of Thinking Big is a must read if you are an entrepreneur, in media, marketing, public relations or any kind of regular people engagement roles. Even if your profession doesn’t require much interactions, it can definitely benefit in your personal life.
Author – David J Scwartz – (1927 – 1987) Notable American motivational writer. He was a professor of marketing, chairman of the department, and Chair of Consumer Finance at Georgia State University.
The line I liked the most – “When the goal for running is to participate in marathon, one quit running as soon as the marathon is over, but if the goal is to become a runner, the habit stays on whether or not you run the marathon”.
Review – This is one of the most powerful and practical book on habit building. James Clear gives examples of real life examples of habit stacking in alignment with personal strength having life changing impact. As the title goes, he emphasizes on the tiny habit change one can make and slip it into the daily routine, it can have a compounding habit in a long run. This books shuns the idea of goal setting for achievements as Winners and losers often have same goals, and many a times when it is not a disciplined approach to winning, they fall back to old behavior. This book is amazing to help you change your lifestyle, put your life in a track you wish to live.
Never Split the Difference
Author – Chris Voss
Free with Amazon Audible – https://amzn.to/2YKOAVm
One line I loved – “Ask Calibrated question – How I am supposed to do that”
Review of Never Split the difference – Author, one of the celebrated Negotiator for FBI, shares his most potent weapon on ‘Negotiation.’ ‘The art of negotiation’ is a sought after program across many global universities offered by Business schools internationally. People spends thousands of dollar in money, months of time and heaps of paper work and practice to get the art right. An important element not only in business, but part of all life, this is a precious skill set. This skill set becomes more and more crucial as one moves up the ladder in corporate structure or leadership position. It focuses on “first empathizing the situation of the other person, then get them to empathize with your situation”. It can be applied for best possible deal on sales, salary, contract or anything you may be dealing with. This book dives deep into human psychology and behavioral sciences. This book simplifies many complex human reactions and put it in the book for simple use. The content of the book if read carefully and applied logically and periodically it can have much bigger impact than a 3 days seminar costing thousands of dollar.
Few important points – Don’t criticize people, nobody likes it. Be genuinely interested in People. People like them who are interested in them.
Review – One of the highest selling books worldwide, over 30 million copies sold in last 80 years, making it one of the best-selling books of all time, written on the year, first published in year 1936. A must read for communication professionals, How to win friends and Influence people is bible for sales, marketing, leaders or CXO level executives, students, relationships and anybody who wishes to improve communication skills and apply it to improve their professional and personal lives.
You’ll know how great the books are once you read them. Reading book online have become quite common these days, thanks to platforms like StoryTel and Audible you can even listen to the, These are the handbooks for successful entrepreneurs. are All the books mentioned above are written by American authors, hence there is a significant influence of American culture of freedom and democracy is dominant. This is actually refreshing and empowering, but as they say, freedom is empowering but not free, it takes attitude, practice, focus and perseverance.
Tips to make best out of these books –
Read in regular frequency
Read each book in a session of 30 minutes
Keep a diary handy to make notes- these are not only business lessons, they are life lessons
‘Dream high, Think big and catch that shooting star’
Investing in N100 – A Mutual Fund, an ETF, Invests in Nasdaq Top 100 Company for Indian investors
N100 is a magical ETF of US Economy for Indian Investors with a low entry barrier and can be owned by any investor in India.
Mutual Fund invests in various asset classes in Equity, debt, Gold. Within that it is further fragmented basis market cap (largecap, midcap, Smallcap) or theme wise (pharma, banking, consumption etc). The beauty is this instrument can offer various colour and flavor to your portfolio and be beneficial for various goals across time frames.
Have a quick glance at N100 on Youtube channel
MOST Shares Nasdaq 100 – One such interesting and less talked about category is funds which invests in foreign equity markets. There are a few, but we are discussing here about NASDAQ 100. One of the most tracked Indices globally, comprises of about 103 largest non-financial companies listed in NYSE. undoubtedly it is one of the most popular index of New York Stock Exchange. Motilal Oswal launched ETF Fund for retail investor in Mid march of 2011. This is a thematic fund indeed, theme is foreign equity, underlying companies are technology heavy. With an AUM about 700 crore, the fund is not a large one, if compared to Indian diversified market. This fund has given a unprecedented return since its inception year on year. An all season for Indian Investors, let us look how it move including the covid19 global lockdown.
But How to invest in MOST Shares N100? N100, trailing the NASDAQ 100 had a great run in US markets itself barring some odd quarters in the last 5 years when Indian IT sectors scrambled to pull up its face. There are a few reasons. The top 10 companies in the portfolio includes – Microsoft, Apple, Alphabet, Facebook, Intel, Cisco, Comcast, PepsiCo. Though on the surface, top 10 companies are mostly tech heavy, but the business are varied. Apple – Consumer product, Alphabet and Facebook’s majority revenue comes from marketing and consumer based apps, Pepsico again is a global leader. The players are not only big in US and India, most have them has made a prominent mark globally and has a moat, it gives them competitive advantage over other players, they are likely to stay above the crowd in various business cycles.
N100 asset allocation
Apart from their strong year on year growth, there is another factor which works in favor of Indian Investors, that is depreciating rupee against Dollar. Though in dollar terms, NASDAQ 100 has given a compounding growth of 15% over 8 years, N100 has grown by 21 % CAGR in rupee term in the same years.
Who should Invest? This is a rare yet easy opportunity for Indian retail investors to own World’s most valued companies in an economic way. The ETF is available even single unit in the BSE and NSE trading platforms. Hence the minimum investment is 1 unit (As on 4th June it costs Rs. 714/ unit). An investor who has an existing portfolio in Largecap schemes can look at this as an additional avenue for wealth creation. Like any equity fund, the investment horizon should be atleast 5 years to realize the growth potential.
How to sell N100? It is as simple as selling any stock or ETF. The volume likely to be lesser than Equity, yet, it is not difficult like NCD/ Bonds. Transaction is easy.
How is N100 Taxed? This fund won’t be taxed like equity Funds in India. This will be taxed like a bond, Debt mutual Fund or Gold ETF.
What is The cost? The Fund has managed the keep the expense ratio at 0.82%, aligned with the low ETF cost structre, which also contributes to better returns for the investors.
What are the risk involved in this?
The Fund carries the risks of Equity based mutual funds
Additionally, Rupee appreciating against dollar could have a negative impact on the fund
The negative performance of NASDAQ 100 will have a direct impact, it is comparable with Indian market data
The AUM of the Funds are low, high redemption may cause high NAV fluctuation as the liquidity in the fund is very low.
N100 is a cool ETF options which makes me say that –markets don’t fail to surprise me at any point. The various thoughts of how to generate profit in dull markets, hedge risk in unprecedented situation often comes in mind, more often the thought that if retail investors can really make money? Yes that’s possible. N100 is one such mutual fund/ ETF of Motilal Oswal Fund house, not that popular in personal finance conversations, this 700 crore AUM Fund is silently taking advantage of the rupee dollar movement, investing in companies which middle class Indians can never think otherwise in their lifetimes.
‘Mutual Fund Sahi hai’ wave has overtaken any other ad campaign in past 2 years and rightly so, as it promotes a product for retail investors. The cost structure, investment amount and liquidity is commendable. But which mutual Fund is Sahi for you, for your goal is an equally important topic to ponder. Happy Investing
What is N100 ? stocks it constitutes? What is the N100 return in dollar terms?
N100 is an ETF (Exchange traded fund) by Motilal Oswal in year 2011, N100 is shadow of the NASDAQ100 index, which consists of top 100 stocks of US NASDAQ stock exchange. The fund has given a CAGR return of 12 % in 1 year, 17% in 3 years, and 15% in 5 years annualised return in N100.
Fund has out performed Nifty by a wide margin over 3 year, 5 years and 7 years time period
The top 10 companies in the portfolio includes – Microsoft, Apple, Alphabet, Facebook, Intel, Cisco, Comcast, PepsiCo. The returns are volatile compared to Nifty based ETF, as the factors of the movement are very different like overseas stock market performance and dollar rupee movement. On the contrary, this gives us a good hedge against rfising inflation/ Gold prices.
NASDAQ Returns in dollar terms – In the period between April 2014 – April 2019, Nasdaq has given an absolute return of about 125%, a 17% CAGR. The return on rupee term was – 139% at a CAGR of 19.88.
If we look at the period between 2011 April 2011, to March 2019,
NASDAQ -100 has given a compounding growth of 15% over 8 years, while N100 has grown by 21 % CAGR.
Apart from taking the rupee dollar advantage, holding world’s most valued companies, this fund also has lowest cost structure owing to ETF standards.
Barring a few one off quarterly aberration, N100 has beaten Nifty with a wide margin in last 9 years, 5 years, 3 years, 2 years and 1 year frame.
Why it is interestingly different for Indian Investors?
In 2011 October dollar was trading at Rs. 50 – 53 , while in 2020 each dollar is worth Rs. 72-57. That means Dollar has become expensive over the years for Indian Investors. In last 5 years, Dollar has risen 3% against Indian rupee year on year.
Expense on the N100 Fund –
Like any other ETF, expense raio is very low. Very low Portfolio Turnover Ratio at 3.00%, as it mirrors Nasdaq100. Category average turnover ratio is 32.15%. Fund manager updated portfolio less frequently than peers in last 1 year. (I.e. fund manager held stocks/bonds in the portfolio for longer duration than peers)
How is N100 Taxed in India?
In India N100 is taxed like a debt fund. It has to pay taxes in accordance with STCG (below 3 years at the income tax slab) and LTCG (10% of profit ) requirement on profit as per laws.
When I wish to purchase an ETF/ Share, apart from doing my own reading and research I also buy 1 or 2 unit of the share, it helps me track the script more actively and take an informed decision.
I AM NOT A qualified investment advisor, spreading financial literacy is my passion. You should speak with your financial advisor or do your own research before making any purchase or sale.
I recommend the below mentioned book for investors at all level.
For beginners – Let’s talk Money – a basic on personal finance by Veteran Journalist Monika Halan – https://amzn.to/2MzK5XL
2. Get the investor mind set with. Rich Dad Poor Dad Cash Flow Quadrant (Rich Dad Poor Dad) – Robert Kiyosaki – https://amzn.to/2AIx4Ze
Bible for stock market investors – The Intelligent Investor by Benjamin Graham – https://amzn.to/2Mwr7kS
11 points Canara Bank and Syndicate Bank Savings Account holders, Business Banking customers and Syndicate Bank Credit Card holders should know
If you are a a Syndicate Bank or Canara Bank Customer worried about Canara Bank takeover, you need not worry. Both, Canara Bank and Syndicate Bank are large sector Banks and worked on this amalgamation preparation for many many months. After the amalgamation they became the fourth largest Bank after SBI, Punjab National Bank and Bank of Baroda
Syndicate Bank
April 1, 2020 onwards, the Amalgamated bank has become the 4th largest in India, with 10,396 branches and 13,408 ATMs. With the amalgamation of Syndicate Bank into Canara Bank, the entity will retain its name, Canara Bank.
The headquarters of the amalgamated entity is now Bangalore. The Manipal head office remains an important office. In this post, will share with you all important information for Syndicate Bank as well as Canara Bank customers.
Canara Bank
Branch Banking with Better accessibility
Better reach and accessibility
This amalgamation provides a broader geographic footprint and helps to derive the benefit of size, scale, strength. Now, the combined entity has a network of close to 10,396 branches and approximately 13,408 ATMs across India. (Canara Bank – 8,837 ATMs & 6,333 Branches, Syndicate Bank – 4,571 ATMs & 4,063 branches). The increased footprint will help the Bank serve the account holders better. Account holders can visit both Syndicate Bank branch and Canara Bank branched to avail branch banking services.
Account Management – The existing account number, IFSC code, MICR code and other identifiers of account and branch will continue, till a change is notified and announced. Passbook can be get updated from respective bank branches for the time being. However, account statement shall be available from any of the branch of the amalgamated bank. Customers can use cheques for withdrawal of cash or they can use Debit Cards in ATMs of any Bank. You can also continue making deposits at either of the bank branches.
The existing account with Syndicate Bank will continue and the existing account number will continue as-is. Any change will be made with adequate advance notice. The account details such as IFSC, MICR, etc.
2. Business as usual at branches with 12 interoperable services
You will continue to be served by your present bank’s branch. Further about 12 interoperable services will be made available to all customers across these two banks – Cash withdrawal, Cash deposit, fund transfer, loan repayment, opening of Savings Bank account, cheque book request, Stop payment of cheque, Hot-listing debit/credit cards, grievance registration, account statement generation, loan account statement and Balance enquiry.
The customers will continue to enjoy the same or better interpersonal relationship you have with your branch.
3. Deposit and withdrawal
Deposit can be made in any of the branches of the amalgamated Banks. While withdrawal from Syndicate Bank is possible without cheque, the Syndicate Bank customer must present cheque at Canara Bank branches and vice-versa.
Recently Canara Bank also launched Gold loan scheme for its customers at 7.85%
Having said that, while most of the servicing remains the same, a few changes may be applicable for Syndicate Bank customers. Here is a list of things that you need to know.
4. Basic KYC
Customers of Syndicate Bank who have already updated their KYC in branch’s record are not required to re-submit KYC documents once again. Alerts will continue to reach the customers of Syndicate Bank on their registered mobile number and email IDs as usual. The existing account number, IFSC code, MICR code and other identifiers of account and branch will continue, till a change, if any, is notified and announced.
5. Savings and current account
The savings and current accounts will remain completely safe and operational under the banner of the Canara Bank. The accounts number of savings account, current account, fixed deposits will continue to have same numbers. Till further notification, the cheque book, passbook will work as usual.
6. Loan account
There will be no changes in any terms and conditions of existing credit facilities and loan facilities will continue under existing terms and conditions. However, if there are any changes after 1st April 2020, customers will be informed well in advance.
7. Internet Banking access
All Syndicate Bank Internet Banking customers will be able to access their net Banking like before. The customer care toll free numbers and contact details remain the same.
8. Syndicate Bank Debit Card
Presently Syndicate Bank customers can continue with the old ATM debit cards. Effective 1st April 2020, all cards issued or reissued will be that of amalgamated bank and new cards will be made and shared on the registered address of the customers.
9. Syndicate Bank Credit Card
All Syndicate Bank Credit cards with no delinquency (arrears due for payment) will be re-carded & replaced with Canara Bank cards assigning the existing card limit, after giving proper advance intimation. Terms & conditions governing Canara Bank Credit cards will be applicable thereon. Credit cards having delinquency (arrears due for payment) will be replaced with Canara Bank cards as above once the arrears is cleared. Accrued reward points will be redeemed and credited to Credit card account duly intimating the card holder during re-carding process.
10. Syndicate Bank Prepaid Cards and International Travel Prepaid cards
Prepaid cards availed from Syndicate Bank will be re-carded with Canara Bank card after giving advance notice & taking consent from the customers.
11. Service charges
The amalgamation has resulted in unification the of service charges for the customers. Customer can view the revised service charges in the websites of respective banks.
More products and services
The amalgamation will bring wider suite of products and offerings with better pricing, greater accessibility due to wide network coverage, improved customer service due to more allocation of staff to front end customer facing roles and opportunity of more wealth management/ add on services
Account holders query
Syndicate Bank customers can reach out to their relationship manager, or call on customer care no. XXXXXXXXXXX or email xyz@bank.com for any query
The Bank does not plan to close any branch now. The customers will be notified well in advance, if they decide to merge branches located nearby. If customers have any other queries related to either of the banks’ products or services they can contact the customer care through toll free numbers or email or visit the nearest branch. A complete list of FAQs can also be viewed on the website here: https://www.canarabank.com/english/amalgamation/
If you have any further query on Canara Bank or Syndicate Bank, Please drop your query on the comment box, will try to respond at the earliest
Shout out to all caring, loving supportive Indians to do their bit to fight the pandemic which has challenged the socio-economic system of the whole world. We all need to stand together like never before.
Covid19 protection gear at Amazon – https://amzn.to/37OQZCD
Donate For Covid19, Fight Covid19 together with India, donate, volunteer and spread love.
Donate and Volunteer for Covid19
As the saying goes, ‘Tough times don’t last, tough men do’. This blog is written in the time, when the mankind on earth, rich and poor alike are dreaded from Pandemic ‘Covid19’, a highly contagious disease and unkind to human race especially with low immunity or health conditions. While we put up a brave face, stay indoors to fight the silent killer CoronaVirus, for months now we stay home bound. The time seem stopped for many of us, but there are less fortunate who are in greater crisis. The daily wager, helpers in the small shops, small businessmen who cannot make their ends meet let alone paying wages to their employees.
This post is to urge each and every Indian to stand up for those less fortunate and earnest request to your bit. Let’s give a morsel of food by donating some, helping some. I am grateful to you if you have already paid your maid, cook, driver, security guards, office peons and other staff member. For the sake of making things simpler, I have a curated a list of charities we can donate at this need of hour to help rebuild our trust in humanity, brotherhood, solidarity and spirit of oneness with all and one.
The charity list includes govt and non-government outfits which are going all out and putting their best efforts to put up a brave face.
Your small contribution can make lot of difference. You can also donate blood to hospitals, dry ration to neighborhoods, distribute masks to needy. There are many ways to become part of a society. Lets be our best selves. We saved it for a long time.
This post is dedicated for those who care for poor, underprivileged and sick. Below is the list of these Indian charities which are fighting coronavirus pandemic directly or indirectly by supporting medical facilities, helping poor, aiding people who are affected great deal.
BEAWARE OF FRADULENT CHARITY FUNDS. Do some check to find their history, news and references to be sure you are putting the funds in right hands.
You can chose Central government charity funds or State government funds should you feel unsure of other entities.
Maharashtra Covid19Relief – Mumbai, with a very high population density through its boundaries, especially in slum areas is facing the maximum issues. Authorities, doctors and volunteers are continuously stepping up their effort to control the spread and care for the patients. To help Maharashtra Government fight Covid19 in various areas, you can donate to the CMO Fund with the below link. Contributions towards CMRF are exempted from Income Tax under section 80(G)
Mumbai Smiles – The NGO is committed to fight against human trafficking, Care for street children, and livelihood program for many talented but underprivileged in poverty stricken areas. I volunteer with them and seeing their good work for about a year now. Donation will be used for dry ration supply, hygiene, nutrition supply and supporting the livelihood program for in the time of Covid 19, will benefits thousands of slum dwellers.
Last but not the least, West Bengal and Orissa also face severe crisis with Amphan cyclone. Please let us help, they are facing worse times.
West Bengal State Emergency Relief Fund – Official donation site of WB Government for Amphan relief fund of the state government. Relief work and disbursal will be done across the affected districts through officials and administration.
West Bengal State Disaster Management Authority – (A Society registered under the West Bengal Societies Registration Act, 1961) ICICI BANK – A/c no 628001041066, Address: 8/1, Hardatrai Chamaria Road. Howrah IFSC: ICIC0006280, MICR code: 700229010
India will need a lot of support of our brave heart essential service providers. Let our contribution be generous to make a difference. Apart from donating, let us buy what is necessary, not splurge. Let us save water, electricity and money. We don’t know what comes next. But these habits will prepare us a great deal if worse has to come, and satisfaction and gratefulness if it doesn’t.
Let’s open our heart and let the spirit of brotherhood bring us better world.
India fights Covid-19 with some heart and great ‘Will’
NCDs generates high returns. The Financial advisors push you to buy them. How to decide what to buy? Let’s see what are bonds or debentures and should we buy them?
What is NCD?
NCD is a fixed income instrument. Apart from taking bank loans Corporates, NBFCs raise money through issuing debentures. It is a financial instrument issued by corporates to support their business needs. There are two type of debentures, convertible debentures and non-convertible debenture. Convertible debentures are unsecured bonds and can be converted into equities or stocks at a future date as specified by the issuer.
NCD is financial instrument used for taking loan from the financial market. It cannot be converted into equity shares of the issuer in a future date, hence it offers higher interest rate. The NCD offers atleast 1.5 – 2% higher interest than any fixed deposit by a reputed bank and company deposits. NCDs come in both secured and unsecure form, secured #NCDs are backed by assets. Unsecured NCDs entails higher risk.
Added Edge
1. What makes it more attractive is, in the falling interest regime, the bond prices may surge, hence the value of the funds.
2. No TDS deducted on the demat form of investment (physical form does)
Points for the new investors
1. Once you come to know about a new NCD offer, check with your stock broker for online application.
2. Like any other IPO, it has a NCD comes with opening and closing dates
3. NCD offers coupon rate. Coupon rate is the interest rate paid on a bond by its issuer for the term of the security. For example, if a NCD issue comes with a face value of Rs. 100 and coupon rate 10%, the interest earned will be Rs. 10 per annum. However, in the tenure if the NAV price falls or surge, it will have no impact on the interest pay out, it will continue as Rs. 10 per year throughout the tenure. Hence, coupon rate is fixed on the offer price and continue through maturity
4. Check for the credit rating allotted by #ICRA, #CRISIL, #CARE (triple A rating Suggest good financial health of the issuer, double A may give higher coupon rate, triple A ensures safety of your capital)
5. NCDs are also traded on stock exchanges. Apart from the new offers, investors can also buy exiting NCDs through stock exchanges, however, one need to be double careful and seek guidance from financial planner.
6. Interests are generally paid through direct credit, RTGS, ECS and NEFT mode. It may offer monthly/ quarterly/ annually/ cumulative options.
7. Tax – The investment is taxed at short term (less than a year) and long term capital gain (debt investment more than 3 years are taxed at 10%) depending on the holding period. The interest will be taxed as per the tax bracket of the investor.
8. This is as liquid as a bank fixed deposit. However, there is no penalty fee for pre-mature withdrawal of this investment
9. Additional Features – Some NCD public issues offer special rate of interest to Senior citizens or to shareholder.
Pros
1. It’s #liquidity is as good as any fixed deposit in bank, which has a specific tenure but can be withdrawn any time. However, FD may charge a penalty fee on interest accrued.. but incase of NCD, there is no penalty.
2. If it is compared with company fixed deposit, company deposits (a popular instrument in the senior citizen segment with 0.25- 0.50% extra interest)comes with various conditions for pre-mature withdrawal, for eg – lock-in periods, penalties etc.
3. NCDs come with Rating from #ICRA #CRISIL #IndiaRatings #CARE which gives a clarity to the investor on the risk involved, higher the rating, lower is the risk (AAA being the highest category, followed by AA, A, A-, BBB and so on)
4. Incase of bankruptcy,Secured NCD holders get preference over shareholders
Cons
1. Incase interest rate increase, the value of the NCD may fall, sometimes even below the Face Value. But this is only applicable for secondary market transactions
2. Though, the instrument can be traded on the exchanges, one may not find a buyer for NCDs if the trade volumes on bourses are low.
Indian Financial Market scenario – The stock market is at 10,864 at Nifty as o Jan 25th, generated -2.5% return, the mid-cap index has shown a weaker performance with -13.5 in 1 year tenure. However, twist is Smallcap index has consistently beaten the nifty index since 2003. This is an election year. Investing in top mutual funds with SIP route would prove beneficial in the long run.
Category analysis – As per news and market information, Nifty midcap index has generated over 20.30%, in 2 years category and 54.60% in 3 year period. Investing in midcap and small cap mutual funds through SIP has been a significant wealth generation vehicle over the years.
Midcap-small cap category is ideal for investors with high-risk appetite, believe in Mutual Fund investment through SIP. Best Mutual Fund invest in this fund in this category is through long term SIP. Top mutual funds in this category are SBI Small Cap Fund, DSP Small cap Mid cap and Reliance Small cap fund.
The fund house – Edelweiss Mutual Fund Ltd. is part of Edeweiss group, started about a decade ago, has six actively managed equity funds, four hybrid funds, seven debt funds, three ETFs and five fund of funds. Edelweiss MF Ranks at 21 as per the AUM Data available at AMFI site as on dec 2018. It is a mid-size mutual fund company with portfolio of 11,894 crore (asset under management) as per Dec 2018 data
Mutual Fund
Edelweiss Mutual Fund
Scheme Name
Edelweiss Small Cap Fund
Objective of Scheme
The investment objective of the scheme is to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small cap companies. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.
INVESTMENT OBJECTIVE The investment objective of the scheme is to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small cap companies. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.
Asset allocation pattern
Investments Indicative Allocation
Equity related securities of Small Cap companies* 65% to 100% Medium to High
Equity and Equity related securities of other companies 0% to 35% Medium to high
Debt and money market instruments^ 0% to 35% Low
Where will the scheme invest?
Subject to the Regulations, the corpus of the Scheme will mainly be invested in any (but not exclusively) of the following securities:
Investment in Equity securities: The Scheme will invest in Equity and Equity related instruments inclusive of convertible debentures, equity warrants, convertible preference shares, equity derivatives etc.
Derivatives: The Scheme may invest in Derivative Instruments subject to SEBI guidelines. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The Scheme may invest in the following Equity Derivative Instruments like: Futures and Options
Foreign Securities
Debt Securities – Government Securities, Commercial papers, certificate of deposits, T-bills, fixed deposits etc.
Also, Investments in the Schemes of Mutual Fund
Fund manager details
Name and age
Education
Experience
Mr. Harshad Patwardhan, 47 years
B.Tech. (IIT), MBA(IIM) and a CFAqualification
Mr. Harshad Patwardhan, is a B.Tech. (IIT), MBA (IIM) and a CFA by qualification. Mr. Patwardhan has an overall work experience of over 23 years in the investment management function and has joined Edelweiss AMC as Chief Investment Officer ‐ Equity and a key personnel. Prior to joining Edelweiss AMC, he was associated with JPMorgan Asset Management India Private Limited since June 2006 as CIO‐ Equities. Prior to that Mr. Patwardhan worked for two years with Deutsche Equities India Private Limited as a senior research Fund Manager: 1. Edelweiss Large & Mid Cap Fund 2. Edelweiss Tax Advantage Fund 3. Edelweiss Multi‐Cap Fund 4. Edelweiss Mid Cap Fund 5. Edelweiss Long Term Equity Fund (Tax Savings) Edelweiss Small Cap Fund 35 analyst and has had extensive experience with several foreign brokerage houses covering a variety of sectors.
Should You Invest? – This is best mutual fund category for inestors with high risk appetite and for a long term goal, SIP in this mutual fund category can earn investors high return over a 8-10 years period. Investor can have some exposure in this category, the fund manager is well experienced, the mid-cap fund managed by him has generated handsome return over 5 years, he has been in the fund management tea of other 5 mutual fund schemes. Other mutual fund companies like SBI Mutual Fund, DSP Mutual Fund and Reliance mutual fund have Best Mutual Fund to invest in SIP in this category.
Aditya Birla Sun Life Dual Advantage Fund – Series 2 NFO Review. Should you invest?
Name of the scheme: Aditya Birla Sun Life Dual Advantage Fund – Series 2
This is an election year, a year expected to be filled with volatility in the markets and Mutual Fund companies have geared up with offerings to suit the investment behaviour of investors. To engage conservative retail investors, the fund offers high exposure in fixed income category, yet aiming to give some higher return with stock investment upto 30%, top mutual fund companies have come up with hybrid funds in many forms.
Aditya Birla Sunlife’s New Fund offering is one such case in point. Aditya Birla Sun Life Dual Advantage Fund – Series 2 is a closed ended Hybrid fund is highly tilted to the fixed income category.
Mutual Fund
Aditya Birla Sun Life
Scheme Name
Aditya Birla Sun Life Dual Advantage Fund – Series 2
Objective of Scheme
The primary investment objective of the Scheme is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the Scheme. The secondary objective is to generate capital appreciation by investing a portion of the Scheme corpus in equity and equityrelated instruments.The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
Scheme Type
Hybrid fund
Scheme Category
Closed Ended fund
Liquidity
The Scheme will have a duration/tenure of 1180 days from and including the date of allotment. The NAV of the Scheme will be announced on every business day. No redemption or repurchase will be permitted prior to maturity of the Scheme. The Scheme will be listed on NSE / BSE and/or any other recognized stock exchanges as may be decided by AMC from time to timeand the Unit holders who wish to redeem units may do so through Stock Exchanges at prevailing listed price on such Stock Exchange.
What is a Mutual Fund NFO – A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.
Investment vehicle analysis – It is a debt tilted hybrid scheme, having upto 30% equity exposure.
INVESTMENT STRATEGY
Fixed Income Strategy: Investments in fixed income / debt investments would be made only in securities which will mature on or before the date of the maturity of the Scheme. Scheme will invest in the fixed income / debt securities with a view to hold them till the maturity. The scheme has the flexibility to invest in the entire range of debt instruments. The actual percentage of investment in various fixed income securities will be decided after Scheme Information Document considering various factors like the prevailing interest rate and inflation scenario, performance of corporate sector, general liquidity and other considerations.
Equity Strategy: The corpus of the equity component of the scheme will be primarily invested in diversified equity and equity related securities of the companies that have a potential to appreciate in the long run to achieve the market linked appreciation (upside) and premium of exchange traded options. The Scheme will primarily focus on companies that have demonstrated characteristics such as market leadership, strong financials and quality management. The quality or strength or management would be a key focus area
Fund manager details
Debt Fund manager
Name an age
Educational Qualification
Experience
Mr. Mohit Sharma, Age – 38 years
PGDCM – IIM Calcutta; B Tech – IIT Madras
He has around 13 years of experience of which 10years are in financial markets. He joined Aditya Birla Sun Life AMC Ltd on October 2015. Prior to joining Aditya Birla Sun Life AMC Ltd, he ran his own healthcare- tech business (June 2012 – May 2015). He has also worked as an Interest Rates Trader in Standard Chartered Bank (May 2007 – June 2011) and ICICI Bank Ltd (June 2006 – April 2007). He started his career in the Equity Research in Irevna Ltd (June 2005 – June 2006).
Equity Fund manager
Name an age
Educational Qualification
Experience
Mr. Vineet Maloo 36 yrs B.Com.
C.A. Has around 14 years of experience in Financial services
Prior to joining ABSLAMC He had been providing analytical support to the Chief Financial Officer of Hindalco Industries Limited, prior to which he has worked with Aditya Birla Management Corporation Ltd. & M/s. D. K. Chhajer & Co., Chartered Accountants
RISK FACTORS ASSOCIATED WITH CLOSE ENDED SCHEMES:
∙ A close ended scheme endeavours to achieve the capital appreciation only at the scheduled maturity of the scheme. However, there is no assurance that the said objective will be achieved at the scheduled maturity of the Scheme and there is a risk that the capital invested may not be fully realisable upon maturity of the Scheme.
∙ Moreover, given the uncertain nature of equity markets, the AMC may be required to liquidate the equity portfolio and the proceeds may be kept in cash and invested largely in cash equivalents/money market instruments towards the Maturity/Final Redemption date and to that extent these investments made may not be in line with the asset allocation pattern.
∙ Investors who wish to exit/redeem before the scheduled maturity date may do so through the stock exchange mode. For the Units listed on the exchange, it is possible that the market price at which the Units are traded may be at a discount to the NAV of such Units. Hence, Unit Holders who sell their Units in a Scheme prior to maturity may not get the NAV returns.
To invest or not – This is a retail focused fund, with a protection with high rated bonds and minimum exposure in equity. The minimum investment amount is Rs. One thousand. However, this is a closed ended fund, it means, the investors can only invest during the NFO period and exit on maturity. Investors neither can invest during the tenure nor withdraw (except demat format, one can trade depending on the liquidity). It leaves investors with no option to invest incase of a market fall or withdraw incase it has given extra ordinary return. Though the investment is for fixed tenure, it doesn’t have guaranteed return You may check https://www.amfiindia.com/new-fund-offer for FMP instruments. This is a clear NO for small and new investors. An savvy mutual fund investor can look at investing upto 10% of their cash/ fixed income portfolio in these kind of investments.
There are many balanced funds like ICICI Prudential Balanced Advantage Fund, Tata Balanced Fund etc. Incase anyone wants to block money for a period, Fixed Maturity plans with complete debt investment may fetch bit higher return compared to fixed deposits.
India Infoline has launched NCD issue Jan 2019. Should retail investors buy? Bond issues targeting an assorted investors includng retail investor has been a common theme in the last year. After a series of debenture issues in 2018, now India Infoline finance has come up with an issue of Rs. 2000 crore this year.
About the Company – IIFL Holdings Limited – Incorporated in 1995, Listed on NSE and BSE in 2005. IIFL has pan-India presence as well as subsidiaries in major global financial centres. IIFL is three key group companies, India Infoline Finance, IIFL Wealth and IIFL Securities.
IIFL Wealth – Family office, AIFs, advisory and distribution services
IIFL Securities – Retail and institutional broking, investment banking
IIFL Wealth – Family office, AIFs, advisory and distribution services
IIFL Securities – Retail and institutional broking, investment banking
IIFL Finance deals with Home finance, LAP, Gold loan, Commercial Vehicle, SME and Micro Finance loans. India Infoline Finance Limited (IIFL Finance) was incorporated in 2004 under the flagship of IIFL Holdings Limited and presently offers small-ticket loan products to retail borrowers, delivered through a pan India branch network of 1,755# branches and digital channels. Now it has a two ddistinct subsidisry a micro finance company and a home fiancé company.
Object of the issue – For the purpose of onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings – At least 75% of the Net Proceeds of the Issue. The money also will be used for General Corporate Purposes – up to 25% of the Net Proceeds of the Issue. An investor with a demat account can apply for the issue. Issue opens on 22nd Jan, and closes on 20th Feb, however, the allotment is on first cum first served basis. NCD unit priced at 1,000, on can apply for minimum 10 units. Issuer aims a raising funds of Rs 2000 cr
Nature of bonds – Secured and Unsecured NCDs
Credit Ratings “AA/Stable” by CRISIL and ICRA,”AA+/Stable” by Brickwork
The company offered both secured and unsecured debenture in this issue. The secured fixed income instrument offers a tenure of 36-60 months, with coupon rate varying from 9.5 – 10.2% interest. Category 1 – Corporates, category II – Non-institutional investors, III – HNIs, Category IV – Retail investors. Retail investors can subscribe upto 30% of the issue.
Mymoneystreets take – Indiainfoline is an established name in broking, NBFC, Mutual Fund and as investment firm, it is also and established distributor of financial products. The current issue of the company is offering atleast 2% higher return compare to bank fixed deposit. With AA rating, investors can look at invest in the secured debentures. Unsecured debentures carries higher risk and higher return. Investor can look at 30% of fixed income allocation in NCD portfolio to give it an edge and diversification.
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