SET UP AN EMERGENCY FUND - VERY IMPORTANT

If you had to come up with a lakh in 24 hours, because of some emergency, could you do it?

Here’s an action plan that will make sure you’re not left hanging if such a situation does come up.

How much is enough?

Usually, it is best to save up 6-months’ worth of your expenses as your emergency fund. If you don't track expenses - make this number 4 months of your take home salary. A large round defined number, such as Rs. 1 lakh is a good target too.

How do you go about doing it?

If you are saving up for a lakh, set aside Rs. 8,000 every month for a year (12-months x 8,000 = Rs. 96,000). This will typically be 20-30% of your salary. If your salary is lower, don't worry. Even if you save just half, viz. Rs. 4,000 every month, you will take at most 2 years to reach your goal amount.

Where to keep it?

Don't leave this money in your savings account where you could accidentally spend it. Move it out of your savings account into an RD or, even better, into a debt mutual fund. This will help you get to your goal even faster, with earnings from your investment.

Keep in mind that instant liquidity is the need of the hour in any emergency situation. There are specific debt mutual funds that also provide you with an instant withdrawal, and sometimes even a debit card for you to withdraw your money at any time. After all, emergencies can strike anytime.

Keep it safe!

Try not to touch this SOS fund for any reason other than an actual emergency. This will be your parachute - and a parachute must be intact to be useful.

Note: The latest fashion accessory is NOT and emergency :)

Start creating your emergency fund now. Set a target amount and start saving up for it.

Financial Freedom For Women

Financial Freedom For Women

Men and women have been created as equals and have equal rights. Unfortunately, for most of us, the financial and social status of women in India comes second to men. The women around us - be it daughters, sisters, mothers or our better halves, have a special place in our hearts and our lives. But many of them are likely to "not" be financially sound, literate or independent.

In today's world, where society is undergoing a big change, women continue to be most prone to financial crisis and are financially most vulnerable. We believe that it is very essential for women to be financially literate and independent, for many reasons like...

The average life of a woman is more than the average life of a man.There is a growing number of single women. This may occur anytime due to career choices, divorce or death / disability of husbands.In absence of earning male members, females often carry the burden of the family.

The work life of women is less than men because of various reasons like raising a child, family problems, health issues, etc. Generally women also receive less pay than men.

Women are more likely to come under pressure /influence of others in financial and inheritance matters.Financially literate and independent women can be of great support and financial help to their families, especially husbands. Women have been known to be smart savers and money managers at home.

One needs to look at the numerous examples before judging women as not being smart enough to handle financial matters. A financially independent woman can today support herself and her family with income. Such a person would have good control over finances and would attempt to shape the financial future for the betterment of all.

Most women are totally dependent on their husbands and families, not only for their day to day expenses but also for their financial future. Women generally don't have any clue about their family finances and are left totally dumbfounded in case of an emergency. Irrespective of how much money is the father or husband making, you are never fully financially independent without your own money. Being economically independent will boost your confidence, taking decisions for yourself, will increase your risk taking ability. You can satisfy your whims with your own money and might be the bread earner for your family in times of need.

Women generally have a different work life than men. Some are freelancing or working part-time or the hours of work are lesser or are more prone to taking leaves and sabbaticals. All these head to small savings for women. Clary Boothe Luce said "A women's best protection is a little money of her own". However, if not properly managed and directed into the right investment channels, these hard earned small savings will be futile.

What to do?
Proper savings and investments can help you become financially independent over time, even if you are not earning. The following are the steps that one should take...

Learn about money: Never feel shy or hesitant to learn more about money - savings, investments, investment products, mutual funds, etc. In case your family is not supportive, you can always reason with them. It is better to know about the financial holdings /assets /insurance policies and bank/demat accounts in your family to be ready for any emergency.

Be Active: The idea is to get more engaged in financial matters of your family, with the support of your spouse. Open your own bank account or have a joint account with your husband. You can also have your own credit card / debit cards for managing your regular expenses. Also start a demat & trading account with which you can make your investments.

Get Covered: Most often we find that the women, not having financial earnings are neglected when it comes to insurance coverages. This is a wrong perspective to adopt as every girl /woman has to be adequately covered with insurance.

Start Saving: The first step is to start saving and then investing those savings. The easiest way to save for long term wealth creation is by starting an equity mutual fund SIP. You can start with a very small amount, say R500 every month. Invest small savings in mutual funds through SIP and see your savings grow. You can also increase the amount of the SIP with the increase in your savings / income. Plan for your goals: You may have many short-term or long-term financial goals. Try to invest for your goals through mutual funds which offer different types of funds which will easily match your investment objectives and horizon. The investment horizon can range from few days to double digit years.

Old Age: A regular inflow of funds or a huge corpus is necessary for your maintenance in your old age. Just imagine being at the mercy of your son /daughter-in-law in future in absence of your husband. We don't even want to imagine that! No matter how much you love your family and children, you should not leave to fate what you can prepare for your tomorrow by investing smartly.

Emergencies: As the pillar of your family, women are likely to find themselves in emergency situations like accident, ill-health, loss of income, etc. of their husband or other family members. Having some money saved for emergency can prove to be be immensely helpful and you would not be forced to beg for money from others. Keep aside some liquid investments for emergencies only.

Conclusion:
Every person has an equal right to dignity, respect, freedom to pursue own dreams and independence, including financial independence. Financial independence and empowerment of women can not only bring great benefits to a family but also to the entire community and country at large. Let us work towards ensuring this, beginning first at home.

Nurture Investments
Rajiv Kapoor FCS
Kanpur
98390-34761

PRIORITISE TAX PLANNING

Few more days to go when the current financial year would end. Sensex is depressed right now. For those who do not follow investment discipline of SIP it's right time to consider investing in ELSS Funds to save tax under section 80C. It would go a long way if one can look at his tax planning as an opportunity of investing.

Prioritise Tax Planning

Tax planning is more than Section 80C. It is more than fixed income instruments such as the Public Provident Fund, or PPF, and the National Savings Certificate, or NSC.

Good tax management can go a long way toward enhancing your return. But, the decision needs to be made in conjunction with your overall portfolio and not in an ad-hoc fashion. For instance, if you have no equity exposure in your portfolio, you should consider an equity linked savings scheme, or ELSS, which is an equity mutual fund that offers benefits under Section 80C. Most investors, in a crazy dash to meet their Section 80C requirement, will opt for unit linked insurance plans, or ULIPs, and endowment plans and often end up with a portfolio heavy with insurance products that do not suit their need.

Most individuals rarely think about tax planning from an investment point of view. Hence one finds that they do not approach an investment with a perspective of whether or not it fits in with their overall portfolio. The approach is often just grabbing up investments that will give them the tax break, irrespective of whether or not it will help them reach their determined financial goals or fit into an overall investment strategy.

Tax planning investments are no different from conventional investments. Hence, it is imperative to obtain an in-depth understanding of all investment avenues available which offer tax benefits and choose suitable ones that will help save tax and achieve goals.

It's right time NOW.

Rajiv Kapoor
FCS
98390-34761

YOUR FIRST MUTUAL FUND INVESTMENT

Useful, simple to understand and easy to execute. Those should be the qualities that your first fund investments should have.

For beginners, these requirements are generally best satisfied by tax-saving funds or balanced funds. Here's why. When you start investing in mutual funds, it makes sense to invest in a fund that invests mostly in equity. The reason for this is that you are likely to have no equity investments at all. Investors at an early stage of their investing life generally have bank deposits, PPF and other fixed-income investments. Since equity is the best form of long-term investment, and mutual funds the easiest and safest way to invest in equity, it follows that the type of fund you choose must be an equity fund. There are two types of funds that are uniquely suitable as beginners' funds. These are Tax-Saving Funds and Balanced Funds.

Tax Savings Funds: Tax saving funds are also called ELSS funds as their formal name in the tax law is Equity-Linked Savings Scheme. They are basically all-equity funds, investments in which are eligible for tax exemptions under Section 80C of the Income Tax Act. Under Section 80C, you can invest up to R1.5 lakh in a set of investments, one of which is ELSS funds. Since they are equity funds, one should invest in them for long-term. This long-term imperative is compulsorily enforced because under the tax laws, investments made into these funds are locked in for at least three years. Because of this lock-in, investors tend to have a good experience of getting reasonable returns from these funds. Moreover, the tax-break acts as a natural boost to returns.

Balanced Funds: Balanced funds, also called hybrid funds combine equity and debt investments in a certain ratio. In order to maintain this ratio, the fund manager will typically disinvest from holdings that have gained more and invest in holdings that have gained less. This, of course, is asset rebalancing.

Effectively, the gains that are made in equity are protected by debt. The great advantage of balanced funds is that they are inherently safer than pure equity funds. They gain well when the markets gain but when the markets fall, they fall less sharply, thus protecting the gains that were made in the good times.

RAJIV KAPOOR
FCS
9839034761
rajivfcs@gmail.com

6 Money Mantras for 2017

Money isn’t everything but everything needs money. With a lot of aspiration and hopes, we have entered in 2017. You must be looking for good Money Mantras to elevate your financial life. I am here with 6 Money Mantras for 2017. 

I am sure that these money mantras will defiantly improve your financial life in 2017.

6 Money Mantras for 2017

1. I will Plan for Income tax saving in advance

Every year we rush at last minute to save tax and end up making bad investments. This year take a pledge that you will start income tax planning exercise in advance. Advance tax planning will surely help you in taking an informed decision.

2. I will establish the second source of Income this year

The next money mantra of 2017 never depends on the single source of income try to generate a second source of Income. Distributed income source always helps you to reduce a risk. Start with part time online or offline business to establish the second source of income.

3. I will save more money for future

Money saves the money saver keeping this thought in mind the next mantra is saving more money for the future. You should challenge yourself by throttling your saving level.

4. I will adopt a rule of pay myself first

If you want to be rich adopt a rule to pay yourself first. This means before you spend any money on groceries, entertainment or household expense allocate an amount for yourself into your saving.

5. I will maintain discipline while making investment

The next money mantra for 2017 is maintaining a discipline while making an investment. The best way of maintaining discipline is SIP. You should atomize your investment via SIP route.

6. I will assess my portfolio regularly and make changes as per requirement

The last money mantra for 2017 is regularly reviewing your investment portfolio and making changes as per requirement.

Rajiv Kapoor
B.Sc, LLb, FCS
9839034761
rajivfcs@gmail.com
rajivfcs.blogspot.in

3 Stages Of Retirement

The 3 Stages Of Retirement

Have you thought about and tried answering these questions?

What will I do after retirement?

Do I have enough money to take care of my retirement?

How will I maintain the same lifestyle once I stop getting regular income?

Retirement is an important aspect of life. With increasing longevity, one cannot stress enough that one has to plan finances for it so that life goes on comfortably.

3 Stages of your Retirement
Retirement can be divided into three phases and the financials are a little different for each of the phases. Let us look at the three phases and how we should manage our personal finance for it –


Active Retirement Phase
This is the phase when you have just entered retirement. You have just retired. You had a regular income which has stopped now but you might have got funds in terms of gratuity, superannuation fund etc.

If you were in a business, you might have cashed out your share. You might have looked forward for retirement so that you have time for yourself, your loved ones and your interests.

This is the time when you can invest time and energy in these aspects of life. You might be starting on or looking for another phase employment or income stream or a business.

You should ensure that you know how much you need to fund your retirement and how much you have accumulated. You should revisit your investment portfolio and tweak it to match the current financial situation.

You might have to reduce some of your aggressive investments and increase allocation in conservative investment options.

You will not have employer insurance and ensure there is arrangement for the same. Check if you have about 6 months of living expenses as cash in hand and cash in bank which can cover emergencies.

Your spending will increase in areas such as medical expenses, hobbies and travel. It can decrease in areas of commute, taxes and office wear. If you have not drafted your WILL yet, it is a good time to do so.

It is better to go for a medical checkup to assess your health and take the necessary precautions. This will help in not being caught off guard on the health front which can cause imbalance in the personal finances.


Slow Go Retirement Phase
This is the second phase of retirement wherein you are used to your retired lifestyle.
Your children might have got married, settled in different homes and cities. You will find a pattern for your daily life that keeps you comfortable and secure. It is important to keep yourself mentally and physically active.

There might be some physical limitations as you are ageing.
Your medical expenditure might rise. Expenses like home renovation, tax payments and financial support for children will reduce.

It will be better if your investment portfolio is more conservative as at this stage in life compared to the earlier stages as your financial losses will have too much of a negative impact to bear or you will take a long time to recover the lost money. Check your will and make changes if necessary at this stage.


Inactive Retirement Phase
In the last stage of retirement, you slow down your activities. You might need support in terms of finances, physical health or psychological health.

You may not be earning too much at this stage. It is important to manage the funds in a manner that takes care of your basic necessities, your comfort and your medical expenditure.


There are non-financial aspects of retirement too that one has to prepare for.

Prepare psychologically – You have to prepare yourself to be at home post retirement. Your life will be less busy. You may not get as many phone calls and emails as you were getting when you were working.

How to keep busy and active – Decide on some hobbies and interests that you want to pursue post retirement. After retirement, ensure you have some activities so that you can be mentally and physically active and life would be more enjoyable.

Family should be ready – You and your family members should be prepared to spend more time together if you are going to be at home.

Identity – You would have always be know as ‘Director of Operations’ or ‘Professor’. But now it will be different. You should be prepared to lead a life outside your profession.

Retirement is an important phase of life and retirement planning should not be neglected.

It is good to be aware of the different stages in retirement and have some plan to manage finances for each stage.

Web Based Tools For Investing

SECRETS OF WEALTH CREATION

Never depend on single source of income, invest to create the second source.

Invest with confidence in Mutual Funds.

Investing in shares may be risky..... but ....

...... Mutual Funds are never risky if you adopt SIP mode of investing and invest for long term.

Invest hassel-free, without boring paper-work ..... view performance of your investments on your hand phone anytime.

When you invest...  you buy a day in future to spend without working.

Start early. ..best time is now.

Know more..... from a friend. ....

Take advantage of technologically upgraded, automated, hi-end, web-enabled tools, especially designed for you, to make your investing a blissful experience, like never before.

I am passionate to help you to become wealthy and to share with you SECRETS OF WEALTH CREATION.

Fix an appointment with me today.

Rajiv Kapoor
FCS
98390-34761
rajivfcs@gmail.com
www.rajivfcs.weebly.com

Saving is not Investing

Saving is not Investing

The two wonders of personal finance "Saving" and "investment" are often perceived as same by most of us. But, both these terms are distinct and have a very important role to play in our financial life.

An investor must understand the difference and relevance of both the elements. And we have to participate in both activities to secure a sound financial future for ourselves.

To begin with, let's understand the meaning of the terms "saving" and "investment". Saving is nothing but the excess of income over expenses. So, if your monthly income is Rs 50,000 and your expenses are Rs 30,000. So your saving is Rs. 20,000.

This Rs. 20,000 helps you in meeting your upcoming family emergencies, buying clothes for a cousin's wedding, or buying gifts for your family this new year, or meet other unexpected expenses, etc.

This saving can be in the form of cash at home or money lying in your savings bank account. When this saving is put to use with a view to generate a return, this process is called investment.

So, when you use your saving and buy a mutual fund, or an FD, or put it in real estate, you do it because you want to generate an income on your money. So, these are investment activities.

Although your money lying in your saving account is also giving you a return of about 4%, but it isn't your investment, because the return is not even able to cover the cost of inflation.

If Rs. 2000 can get you a third AC train ticket from Mumbai to Delhi today. Five years later, you would need around Rs 2800 for the same ticket.

Now if you deposit Rs 2000 in your saving bank account today, it would give you around Rs 2500 after 5 years, which will not be enough to provide for the ticket.

Therefore, money kept in a saving bank account is not enough to cover the cost of inflation and hence is not an investment.

This means money looses its value over time because of inflation, and in order to combat with the evil of inflation, we must Invest. A major differentiating factor between saving and investment is the purpose behind engaging in each. 

And that is where we shall give a deep thought and decide if the goal for which we are saving, will be met by simply saving or if we need to put in more efforts and "invest that saving" and actualize our goals.

Saving is generally not backed by a goal. The money is being saved because that money is not in use today, or is saved for meeting any uncounted expenses. Or even if there is a purpose it isn't a defining factor of your life, it can be saving for buying a mobile, or a dress, etc.

On the contrary, there is a specific purpose behind investing which has a significant impact on your life. We invest for buying our dream house, we invest for our children's education, we invest for our children's marriage, we invest for our retirement or may be we invest simply to create wealth.

These goals can not be achieved by just saving. Imagine saving Rs 10 Lacs in a bank account @ 4% interest for meeting your daughter's wedding expenses which is planned 10 years hence.

There will be a huge mismatch between the funds you have in your saving account then and the funds you require. And this gap can only be filled with investment.

Therefore, it is important that in order to achieve our life goals, we invest. And each goal must be aligned with an investment.

For each goal, a particular type of investment is required which is determined by the investment horizon, amount required, your financial position, risk taking ability and various other factors. Your financial advisor will help in selecting the investment products ideal for your goals.

The bottomline is it is important to save and to invest the saving. Both of them are independent as well as interdependent. You must be able to draw a boundary between saving and investment, and not just save for your future. 

Saving & Investment is an ongoing process and should not be disrupted. So, if you are saving and not investing or worse not saving at all, then you must get your act together as your financial health is dependent on these exercises.

Rajiv Kapoor
FCS, CIA
9839034761

Women Play an Important Role in Shaping of Country's Economy

I play such an important role in India’s economy and all this while I thought I was just a housewife.

I have spent years and years playing hide and seek with my savings, saving and hiding, saving and hiding and more saving and more hiding my savings from my family.

I secretly and proudly felt richer and richer with the increasing count of my savings every year. No one and no one except me knew how much and where that money was.

After all, that was my true treasure and world’s best kept secret. I had seen how my mother resorted to her secret treasure in the times my father needed money. Impressed, I believed in carrying the same tradition. And would have continued to do so, sigh! Happily.

I still remember those ideas of sewing additional pockets in my purses where my treasure could be nicely placed. I still remember how I had to once protect my treasure from being eaten by the rodents which attacked my kitchen (yes, I had kept a few thousands first and then filled my jars with pulses). I had once fallen from the stool trying to keep one hiding in the upper part of my cupboard.

Sometimes my money needed extra protection as I had kept a few under the ‘tulsi’ plant in my courtyard. I offer prayers to ‘tulsi’ daily, though my money hasn't really grown.. if wishes were horses.. !!

My daughter who is now in graduation, would often make fun of me by calling me a ‘hoarder’. Yes, she was my partner in crime as she counted ‘my’ money for me once in a while with a ‘God promise’ to not share with anyone.

On the fateful night of 8 November 2016, when my husband announced on the dining table to look for all the currency to be exchanged in the bank, my heart sank.

I did not want to share the world’s best kept secret so openly and so easily with the same set of people I risked my life to hide from.

After all, it was for them that I was doing all this, just like my mother did, for a rainy day!

How will I ever emerge like a super woman with all the money when my family will need – perhaps on my daughter’s wedding? Or even better, for buying a house a few years later? My dreams shattered.

This was not all. While I was recovering from this shocking news, I heard my husband talking on phone with his friend “that’s why, its best to keep money in the banks. Not only the money grows, it offers opportunities to invest elsewhere and also protects our hard earned money” (in my case hard ‘hidden’ money).

I glanced at my tulsi plant which was swaying with the changing direction of winds. I instantly knew what I needed to do. I confessed to my husband about my savings. All the sewn purses, secret pockets, kitchen jars were emptied. After a hearty laugh, here he was, explaining to me what I should have done for the benefit of my family, instead of hoarding the money ‘for the benefit of my family’:

I should have opened a bank account and deposited my money instead of hoarding it.

Had I been a smart investor in addition to being a smart saver that I already was, I would have actually multiplied my money several times.

By not investing my money rightfully, though I was able to somehow protect them from rodents in the house, I could not protect them from the fall in their value due to inflation. My money kept losing its worth sitting in my purses and I never got to know.

All I needed was a bank account to start a systematic investment plan (SIP) of as low as Rs 500 a month.

The timing could not be better to be financially wise. My husband did understand my self-esteem need of having my ‘own’ money, my ‘own’ savings.

He suggested that I should immediately start investing. In the era where I can withdraw and transfer money with the blink of an eye, there was really no need to keep real currency at home at any time. With the changing times, one needs to change. I wonder why I did not, earlier.

He introduced me to an app known as ‘NJ Wealth’. 

There are several other such apps in the market now. I particularly liked it as it appeared extremely user friendly (even for non-finance savvy persons like me) and helped me make my financial decisions with a lot of ease.

When one door closes, the other opens. For me, this blow was an eye opener. I will no longer have to decide where to hide my money. Instead, I will now make decisions on where to invest.

The ‘tulsi’ in my courtyard was springing and my partner in crime was smiling!!

Rajiv Kapoor
BSc, LLb FCS CIA
9839034761

Why don't women make investment decisions?

Why don't women make investment decisions?

Today the world is talking about Women Empowerment.

In India, most public discourses on women focus on their safety. However, when you dig deeply, many of the issues boil down to empowerment in an everyday sense, and one of the issues underlying empowerment is often money.

The obvious problem here is that women in general earn less than men, often a lot less.

However, that's just one part of it.

There is another dimension to this.

Even when women earn well, and even when they belong to a milieu where there is no overt discrimination, they are less likely to be managing their own money, their savings and their investments.

Leaving out those who are in a financial profession, it seems that investments is something that women just don't do.

This state of things wouldn't come as a surprise to anyone but we need to pause and question it a little deeply. What exactly is the reason?

The obvious answer is that in families, it's the men who manage savings and investments. 

Also, there's the basic assumption that men are the savers and investors while women are the spenders.

This is incredibly widespread and not just in a traditional background. Watch the ads on TV. There are plenty which show women as the wise and smart and sensible decision maker and men as the impulsive ones.

However, these are all likely to be in things like nutrition or consumer goods and such. When it comes to ads that are about financial products, you see the reverse. The wise and foresightful husband plans for the future while the woman is buying LCD TVs etc.

So how will this change? I for one don't think that any kind of top down, patronising solution (an investment equivalent of a women's bank, for instance) is going to work. Nor are the bizarre 'specially for women' bank accounts--they're just marketing gimmicks.

Money is power, and that power extends not just to earning money but managing it, investing it and having a say in what's done. This kind of power is something that's transferred not when someone who has it gives it away but when someone who doesn't have it steps up and acquires it.

At the end of the day, there's no difference between men or women who don't know enough about personal finance. Both are in majority. And there's no separate men's and women's solutions to this.

Regardless of gender, there are plenty of resources out there to educate oneself and pull one's level of understanding up by the bootstraps, as it were. It's sounds like a tough job, but there it is.

Rajiv Kapoor
BSc LLb FCS CIA
9839033761

Effect of Rupee Movement On Stock Prices

Effect of Rupee Movement On Stock Prices

 

Rupee is again near its lows against dollar. In recent past rupee movement has been quite volatile and this volatility can be attributed to factors like Government Policies, Interest Rate Scenario and demand and supply imbalance. Although as an individual stock market investor we cannot control volatility but we can definitely device some strategies which will enhance our returns. If you can proactively sense the direction of rupee movement (either up or down) you can use it to your advantage by capitalizing on price fluctuation of exchange rate sensitive stocks.

In this article we will identify exchange rate sensitive sectors and stocks in Indian stock market and try to understand the correlation between stock price and exchange rate. Individual investors can exploit this knowledge to earn appreciable returns in short term.

Impact of Exchange Rate Fluctuation

Indian companies can be divided into two groups based on the impact of currency fluctuation on their stock price and profitability:

1. Net Exporters – These companies sell product to outside world and receive payment in foreign currency (be it dollar, pound, euro etc). Whenever rupee appreciates as compared to these currencies, companies are exposed to translation loss as they can buy fewer rupees with same amount of foreign currency. This translation loss hurts their profitability since the raw material cost is in terms of rupees. Similarly, company’s profitability increases in case of rupee depreciation.
2. Net Importers – These companies buy product from outside world and make payment in foreign currency. Whenever rupee appreciates they are able to buy more foreign currency for payment resulting in overall translation gain. Profitability of companies increases in this case and similarly, profitability decreases when rupee depreciates.

Choosing the sectors to invest

Now we know the broad impact of currency movement so let’s focus on the sectors where one should bet (long or short) in case of anticipated currency movement (up or down)

Information technology 

This is one of the sectors which are most sensitive to exchange rates. It falls into category of net exporter hence benefits from rupee weakness as compared to foreign currency. This is one of the recommended sectors to take exposure for short term as the stock price movements are in the tune of 4 to 5% in very short span of time.

Textiles 

This sector is a net exporter and receives most of the payment in dollar terms. It benefits once the rupee gets week.

Petrochemical 

Earnings in most businesses of this sector are linked to dollar as the key raw material i.e. crude oil is purchased in USD. Rupee appreciation benefits this sector in short and long term.

Pharmaceuticals 

This sector has exposure both in terms of export and import. They earn foreign currency through exports but they need it for importing various chemicals too. This sector is a tricky one with respect to exchange rates.

Auto 

This sector has considerable amount of income from export of vehicles. It benefits from rupee weakening but there is one more angle to it. Sometimes the parts they use for assembly are imported. The one who uses more indigenous parts benefits the most in case of rupee depreciation.

Summary of Buy/Sell decisions in Stock Market

Sector	Category	Rupee	Exposure
Information Technology	Exporter	Strong	Sell
		Weak	Buy
Textile	Exporter	Strong	Sell
		Weak	Buy
Petrochemical	Importer	Strong	Buy
		Weak	Sell
Pharmaceuticals	Exporter/Importer	Strong	Tricky
		Weak	Tricky
Auto	Exporter	Strong	Sell
		Weak	Buy

Conclusion

This article covers important sectors and you can use it as reference to take informed decision. There are a lot of other sectors which might get affected based on their foreign currency exposure. If you want to analyze impact of currency movement on a sector of your choice you need to focus on basic pointers like company status (net exporter or net importer) and how much hedging company does so as to mitigate the effect of exchange rate fluctuation on its profitability.

RAJIV KAPOOR
FCS
Company Secretary in Practice
9839034761

I AM YOUR WELL WISHER BUT ARE YOU YOUR OWN ??

I AM YOUR WELL WISHER BUT ARE YOU YOUR OWN ??

I wish all my friends to be healthy and wealthy. Discipline is the key for being healthy and wealthy. Follow regimental life-style for being healthy and disciplined investment plan for being wealthy.

Invest in Equity Mutual Funds for long term wealth creation. Have full faith and conviction in equities. Best way to invest in equities is through mutual funds and that too through SIP mode. Invest religiously and without predicting the sensex. Equities are NOT volatile in long run.

Someone who has made good money from equities would never share that fact with even a close friend, as that would lower his esteem in the eyes of his friend. He would always show that whatever he is, that’s because of his hard work in the calling in which he is actively engaged.

There would be many who would give casual negative remarks on equity investing. With due respect to the feelings of all those people who have actually had bad experience in equities, I would say that, they are pre-conceived and excessively biased.

Being disciplined in investment means remaining invested for long term and investing consistently over fairly large period of time. People blame equity investing  because they enter when sensex is high and exit when it sinks. They try to time the markets and there they fail.

No one can time equity markets hence best strategy to follow is to keep investing through SIP mode and if possible by investing more when markets not performing.  Equities give better returns than any other asset class including immovable properties.

One is happy appreciating his wealth in immovable asset class after holding it for fairly long period of time, but had the investment in equities been for the same period of time, then the returns might beat the returns from immovable properties.

We offer many on-line and automated facilities which will make your investing an enjoyable and blissful experience. Be your own well-wisher. Talk to me to evaluate your existing investments for free. I am passionate about helping friends to get wealthy.

Rajiv Kapoor
Kanpur
9839034761

Life Cycle and Wealth Cycle Stages - FIND YOUR CATEGORY

Life Cycle and Wealth Cycle Stages - AN ANALYSIS

The life cycle stages of an investor can be classified as follows :
o Childhood stage
o Young unmarried stage
o Young married with children stage
o Married with older children stage
o Pre-retirement stage
o Retirement stage

· The income level of investors, the saving potential, the time horizon and the risk appetite of the investor depend on his life cycle.

· Younger investors have higher income and saving potential, take longer term view and may be willing to take risks.

· Older investors may have limited income and saving, shorter time horizon, and unwilling to risk their savings.

· There are 3 wealth cycle stages for investors :

o Accumulation stage is when investors are earnings and have limited need for investment income. They focus on saving and accumulating wealth for the long term. Equity investments are preferred in this stage.

o Transition stage is when financial goals are approaching. Investors still earn incomes, but have also draw on their earnings. Investors choose balanced portfolios that have both debt and equity.

o Reaping stage or distribution stage in when investors need the income from their investment, and cannot save further. They reap the benefits of their savings. They prefer debt investments and preserving of capital at this stage.

· Inter generational fund transfer refers to transfer of wealth to an investor. The preferred investment avenue will depend on the life cycle and wealth cycle stage of the beneficiaries.

· Sudden wealth surge refers to winnings in games and lotteries. Investors should be advised to temporarily park their funds in money market investments and create a long term plan after thinking through the plan.

And Finally affluent investors are of two types :
Wealth preserving investors who are risk averse and like to invest in debt.

Wealth creating investors who prefer growth and are willing to take the risk of equity investments.

RAJIV KAPOOR
9839034761

WHY DO PEOPLE INVEST IN LIC POLICIES WHEN THE RETURNS ARE SO BAD ???

WHY DO PEOPLE INVEST IN LIC POLICIES....

People in India tend to believe that LIC has an implied govt guarantee. Most Indians looking for safety of their money, think LIC is the best for them. It is like saying that your money is safer in SBI & not in private banks !! Really ?

So the safety seekers are more likely to invest in LIC, even though the returns are very average in most LIC endowment based plans. If you are happy with 4% returns, all the best to you.

LIC has the most entrenched network of advisers & its a legacy of 50 plus years. It has become customary to buy LIC, atleast your dad is bound to recommend you the same once you start your first job.

However the fact is that the times when 4% returns from LIC were good(1950s to 1980s) are long gone. With inflation running 10% for a decade, LIC plans have been a big value destroyer for most. 

Unfortunately, it takes 2 decades for you to realize that you have lost money on LIC investment. So most people don’t even understand the 4% returns i am talking about from LIC.

The LIC agent is mostly a known social person from the same locality. It becomes almost obligatory to buy policy from agents, even if you know that you don’t understand the investment.

Also what is the adviser’s interest in pushing the plans ? Of course, LIC is one of the best in commission payouts largely because of the nature of the policies sold (endowment plans). 

Whats worse, there is no accountability on returns since most plans work on 20 plus years tenure. So you can’t even confront agent like you can in case of ULIP/market linked plans. You tend to feel that your investment are good & guaranteed !!

Most importantly, majority (tempted to say all) LIC agents almost have a similar pitch.They almost never talk to you about “annualized returns”. The pitch is “your money grows 4 times in 20 yrs…..6 times in 30 yrs, etc”. 

Most people can’t calculate what the annual % returns are. Fact is most returns are 3.5% to 5% max. But it is never stated clearly on paper & the agent gets away by quoting “additional bonus” & other stuff.

No clear track record of past annual returns % ( considering all bonuses) is disclosed by LIC. This actually helps the agent & LIC is not taking any efforts to curb this mis-selling. Who will buy any policy if it were known that returns will be 4% only ??

Hope the above points help you understand the key reasons why LIC & traditional endowment plans even by private insurers, still dominates the Indian market.

Happy Investing in Insurance Policies !!

Rajiv Kapoor
9839034761

I AM SO GRATEUL - THANKS

Thanks for every support, help and courtesy.

I am so grateful.

Even though having realized importance of financial planning and understanding strategies which create wealth, I made few mistakes early in life that prevented me to create more wealth than what have I created by now. This lead me to inquire from people and friends around, whether are they also committing similar mistakes?? The result was astounding. I realized that most of my friends did not commit any mistake because neither did they knew enough about financial planning nor they were aware about need and importance of investment and wealth creation strategies. For most of them to become rich was only through slogging, real estate or lottery.

Initially it was really difficult for me to prove my genuine intentions, gradually however I could prove my mettle and garner confidence, faith and credence of those who were apprehensive initially with my principles and concepts.

Having gained enough confidence in this area of knowledge and realizing that this can be part of my professional services as well, I started selling Mutual Funds and other investment and insurance products in a very humble way about four –five years back.

And since then there has been no turning back. I am happy to understand the power and the truth of the quote “Give out what you want to get back”. Selflessly, helping others has made me to be loaded with enough of information and knowledge that has immensely helped me to care for my own investment and wealth creation strategies.

I am grateful to all my friends who have been trusting me and seeking my help in their financial and investment decisions.  Their expectations has steered in me, the need to remain updated and equipped with enough of knowledge in this field which has eventually helped me in a big way.

I am happy that all those friends and clients who sought my advice for investing their hard earned money have already made good money out of the investments that they made and that number of investors are increasing every month most of whom are through referrals, which itself explains the level of confidence, affection and trust that I have received from you all.

Thanks for every support, help and courtesy.

I AM SO GRATEFUL.

RAJIV KAPOOR

9839034761

INVEST WISELY -START EARLY

Traditional financial planning is so simple it can be summarized in one sentence...

Make more than you spend and invest the difference wisely.

Even the "invest wisely" portion is simple because academic researchers have fully documented how to properly construct a passive, indexed, asset allocation portfolio.

There is no "mystery" or "secret". No experts, formal education, or specialized training required. Anyone can do it. Just open a brokerage account, save, and invest. You don't even need a broker - you can do it on your own.

The problem is almost nobody does it.

Why?

When you're 20 years old you can't be bothered with something like retirement saving because it's so far off in the future it appears irrelevant.

When you're 30 the focus is on buying a home and/or starting a family so every penny is needed.

When you're 40 the kids need braces, eat like horses, and their college funds need maximum contributions.

When you are 50 it's too late. Too much time has elapsed to allow compounding to magically convert small investments over long periods of time into large sums of wealth. The easy door to passive wealth accumulation is closed.

So start early ..... start SIP in Equity Mutual Funds now.

Call.....

RAJIV KAPOOR
9839034761