Secrets of Wealth Creation .... Know more from me ....!!

Secrets of Wealth Creation .... Know more from me ....!!

I am sure that there are some secrets that wealthy people know and others don't know. Of late, I have been carefully studying people around me in day today life whom I really consider wealthy. Sharing with you my small understanding on wealth creation ........

We don’t need to be lucky to become wealthy. However this is a paradox that there are people who are wealthy because they were lucky. Like everything else in our life, wealth is the result of our conscious manifestation.

Conscious manifestation is the science of altering and experiencing reality as we wish.

It's not taught in schools.

The key word here is ‘conscious’. Because we are manifesting all the time, whether we are aware of it or not!

Health, relationships, abundance or even poverty - we attract in reality what we want to experience.

We carry our own respective wealth blueprints.

Each of us carries our personal equation with wealth. If we experience wealth struggles, chances are that we are carrying an unconscious tendency to mistrust, fear or shrink from inviting abundance into our life.

Resolving this problem is the first step towards transforming our wealth equation.

Most often, the answers lie in our past relationship with wealth - ideas we were fed as children, past failures, or some decisions we made.

With simple understanding and awareness, one can alter his conscious equation with wealth.

The unconscious ideas we carry about wealth are deeper and more difficult to uproot. But it’s not impossible!

It's not a desire, it's my belief that I will create good wealth in couple of years from now. My journey of wealth creation has already begun. It's an experiential truth for me.

It's so simple, you too can come along.

Want to Create Wealth .......  Know more from me...... !!

Rajiv Kapoor
9839034761

6 things to know why equity mutual funds are a good option for making investment

6 things to know why equity mutual funds are a good option for making investment

The scheme gets compounded returns which help in multiplying your money over a certain period of time.

Amongst the various investment avenues present in the financial market, equity mutual funds are one of the best category funds for an investor to invest their money.

Equity mutual funds not only help you in getting capital appreciation, but also help in getting tax savings. For that purpose you need to go for the options available under equity mutual funds which are specially designed to give you a tax benefit. These funds may even provide you inflation-beaten returns in the future.

They can be linked to financial goal

Most of the funds are open-ended, which makes it easy to link the investments with any of the financial goals, like child marriage, child education, vacation, retirement planning, wealth creation etc. Investors can achieve their financial goals, as the schemes comfortably fit in the duration of any goal which they wish to get it fulfilled. However, make sure that the financial goal you are opting for should not be less than five years.

They are diversified

The amount invested through equity mutual funds are spread in substantial sectors and have holdings in various companies which allows the fund manager to spread the risk and reduce the future losses due to market volatility. However, equity funds having a well-diversified portfolio cannot escape all risks. Therefore, you should never put all eggs in one basket.

They are tax-saving

Investors can avail tax benefits by investing in ELSS (Equity linked saving scheme) funds. These equity-linked tax saving investment schemes which provide investors a total tax saving benefits of Rs 1.5 lakh under section 80C of the Income Tax Act 1961.

These are tax-free

Equity mutual funds, which are invested for more than one year of time horizon, are tax-free. Even dividend received from mutual fund scheme is also tax-free in the hands of investors. Therefore, you get the desired appreciated capital without any tax getting deducted from any source.

They are highly return oriented

The scheme gets compounded returns which help in multiplying your money over a certain period of time. You earnings get reinvest and returns are calculated on every sum of the final earnings which includes return earnings of the previous years. The more you remain invested, the more you will be able to increase the potential of your inflation beaten investment earnings.

They are easily redeemable

It is very easy to redeem your money from open-ended equity funds. These mutual funds offer easy to invest facility through which investment can be done through the ECS mode. Whenever you want to withdraw your free units, it can be done very smoothly through redemption process. You can even stop your SIP at any point of time without getting into too many formalities. After signing the redemption form, it takes a maximum of three working days to get your money in the registered bank from where you have started your investments.

Rajiv Kapoor
9839034761

Can You Trust Your Bank Relationship Manager?

Can You Trust Your Bank Relationship Manager?

What happens when you go into your bank to deposit a large sum of money or if you have a huge balance in your savings bank account.

Probably someone from the bank staff would approach you with an excellent investment option for your cash or your bank balance. This person is your Relationship Manager.

You'll be told to divert your money into a product as the money that is lying in your account is generating very low return while their investment product will deliver way better returns.

So, shall you do as he says? Since he's your banker and there exists a relationship of trust between the bank and the customer, and you entrust your hard earned money with the bank, because you trust the bank.

The answer to this is simple, “No”

We often hear about instances wherein individuals were fooled by their Relationship Managers, and were made to invest in a product which were far from suitable for them.

A 60 year old man approached his RM, he wanted to invest a part of his retirement corpus in a product which could give him a better rate of return than his saving account. He wanted to keep this money as his emergency fund, so there should be safety of principal and flexibility of withdrawal.

The RM sold him a long term single premium endowment plan.

Now what will the poor old guy do with this policy. He has to dedicate a huge amount today which will be locked in for a long period of time, probably until he dies. Moreover, it didn't serve the purpose of an Emergency Fund. And the worst part is, he didn't even know that he bought an insurance policy.

In another instance, a 32 year old man who was on the lookout for a good tax saving option, asked his Relationship Manager for advice. The RM suggested him a product which had the following features:

1. The investment is eligible for deduction u/s 80C and 10D

2. He would get a life insurance cover of Rs 15 Lacs

3. He will get a fixed return of 12% p.a.

What else could he ask for? The RM was a Messiah for him.

Was he really?

Probably Not.

The reality was, the first two points were true. The third point had a small glitch, and that was Fixed Return, it was actually a return of upto 12%. It could be 4%, 5%, anything below 12%. And another very important point that the RM forgot to mention was, this product had a lock-in of 22 years.

The investor was quite confident about the product, but then he decided to consult his wise uncle before investing. This decision helped him from being screwed up big time. The Uncle could sense there's something fishy because of the over enticing features of the product. So, he researched and revealed the truth to this investor, that this product was not just meant for him.

There is no end to such mis-selling stories. Your bank RM should be the last person to seek investment advice from. The advice can cost you dearly.

But why do the Relationship Managers sell the wrong product to the investors?

So, they mis-sell because of the following three factors:

1. The Relationship Managers get Commissions on the investments that you do through them. And each investment product has a different commission percentage attached to it. And generally, the commission paid on a product and the quality of the product are inversely related. This means an investment product which bears a high risk and offers low return will offer a higher commission, compared to a product which bears a lower risk and offers high returns. So it goes unsaid, that the RM will pitch that product which will bring him the highest Commission.

2. The Relationship Managers get sales Targets. They get overall targets as well as targets to sell specific products. So, in order to achieve their targets, the RM would make you as their target, and will try to sell those products to you, where they are falling behind.

3. The Relationship Manager will offer those products to you which are lying on his shelf. The bank will have a tie – up with limited number of companies, so they have only those products to offer which are offered by those companies. For Eg. You want to buy a Term Plan. Now you ask your bank RM to suggest the best Term Plan for you. Since your bank has a tie up with let's say two Insurance Companies, so your RM will give you options from those two companies only. Whereas, there are so many Term Plans available in the market which are way better than the ones suggested by him. But because he has only two options to offer, so he would advise you to go for either one of them.

So to conclude, your investment is a product of the RM's Commission, his targets and the products available with him.

The only way to avoid falling prey to the trap is be updated, and take a well researched and informed decision. The idea is you should not blindly trust anyone when it is about your hard earned money and not that after reading this article, you look at your Relationship Manager with an eye of suspicion and run away whenever he comes towards you. It is because not everyone mis-sells, he might have something good for you.

You should rather research, consult your financial advisor whenever you get investment advisory from someone else.

So, the crux is banks are a good place for taking loans, for depositing money, but not for seeking investment advice.

Rajiv Kapoor
FCS
Investment Advisor
9839034761

Delay in Investing

Nurture Investments
9839034761

Rs 2.35 lacs after 10 years which means Rs 1.31 lacs in todays worth (discounting inflation @6%), this is what procrastination costs you if you delay by just 6 months in taking a small decision of opening an SIP in an equity mutual fund.

You delay your investment decisions month on month and then wonder how your friend is wealthier than you ..... Isn't it ??

WHAT ARE MIP's - DO THEY GIVE MONTHLY INCOME?

Do MIP or Monthly Income Plans give Monthly income? – Answer is NO

They are wrongly named.

So then, does it deserve your money?

Have you come across fund schemes given below?

·         Birla Sunlife MIP II – Savings 5

·         Birla Sunlife MIP II – Wealth 25

·         HDFC Children’s gift fund

·         HDFC MIP

·         HDFC Multiple Yield Fund

·         HDFC Retirement savings fund

·         ICICI Pru Child care plan

·         ICICI Pru MIP

·         SBI Regular Savings Fund

·         Sundaram Regular Savings Fund

There are many more similar ones from almost each and every fund house.

All these schemes fall under a category called Monthly Income Plans or MIP. While several of them have the words MIP or Monthly Income Plan included in their names, that’s not a prerequisite. See the examples used before.

What is a Monthly Income Plan or MIP?

An MIP is what you call a hybrid investment with a mix of debt and equity components. The debt portion is typically more than 70%, rest is invested into equity.

The idea behind an MIP is to attract that investor who is not so happy with the returns of aBank Fixed Deposit and is willing to take a small risk to get a better return.

So, the financial engineers working at the mutual funds created the MIP. The debt portion provides the safety to the portfolio where it relies on bonds to bring in more certainty. The equity portion is expected to bring in that extra kicker of returns.

So, do you get a monthly income?

To get a monthly income, you will have to choose a monthly dividend payout option. Strange as it may sound!

The irony is you can actually choose a growth option in a Monthly Income Plan where the value of your holding keeps going up.

By the way, the dividends are not guaranteed. If the fund manages to make money, it will announce a dividend. If push comes to shove, they may even sell existing investments within a fund to generate cash to pay the dividend (income).

Then why are they called MIP?

Well, that’s the job of the marketing department. To enhance its appeal to a low risk, income seeking investor, it was named as an MIP. In fact, they went a step ahead and used some emotional hooks such as child, retirement, etc. See the example names mentioned at the beginning.

What about taxation?

That’s an important question. An MIP is taxed like a debt fund. It means that if you sell the fund before 3 years of buying, the capital gains are taxed as per your income tax bracket.

However, if you sell it after 3 years, you get to index your cost and pay a lower tax at 20% of the cost indexed capital gains.

From a taxation point of view, it is more efficient on a 3 year plus holding basis, as is any other debt fund.

Also, while the dividends are tax-free in your hands, the fund pays a 28.84% dividend distribution tax on your behalf, which is ultimately charged to the fund expenses.

Ah, expenses. What kind of expenses do these funds charge?

Expenses is a touchy topic. If you were to look at the structure of MIPs, the most aggressive ones hold about 25 to 30% equity and the rest in debt. The debt portfolio is also in medium to long term bonds.

The expense ratio of Birla SL MIP – 25 is about 0.89%. For HDFC MIP – Long term plan, the expense ratio is at 1.26%. The number for ICICI Pru MIP is 1.81%.

Does it make sense to invest in an MIP?

The benefit of having an MIP is the auto rebalancing in the fund. Since it strives to maintain a pre-defined ratio of debt:equity, it keeps rebalancing the portfolio to maintain the ratio.

For those who cannot take the effort (basically, you are lazy) to maintain a similar asset allocation may be better off using an MIP.

But overall it is a disaster. You see you include equity investment in a fund, take on the risk associated with equities and yet get taxed like debt.

If you know, an equity fund after 1 year of holding attracts zero tax on capital gains. But for MIP, the taxation is as mentioned earlier.

What’s the alternative?

The alternative is to choose a pure debt fund or bonds for upto 70% of the portfolio and invest the remaining money into an equity fund.

The further caution is don’t chase the returns only. A Birla SunLife MIP was able to deliver a 21% 1 year return for specific reasons in investment choice. It is unlikely to replicate it in the future.

As far as returns are concerned, your expected returns will be in line with the broad asset class expectation. 

Take these facts into consideration before you make your investment into an MIP.

www.rajivfcs.weebly.com

Rajiv Kapoor

Practicing Company Secretary

Kanpur

9839034761

21 Thumb Rules of Financial Planning:

21 Thumb Rules of Financial Planning: 

1. 30 % of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayments, if any... 
3. 30% of your income must be SAVED and INVESTED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations.
5. 6 Months Expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc) 
6. Home Loan must be registered and apply on both Husband and Wife name. (Both can get benefits on Home Loan Tax benefits) 
7. Buying Second house for investment is not advisable (Survey reports - it will fetch you only around 3% return) 
8. After 45 Years of age, not supposed  to  enter  into  any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.) 
9. Have proper nomination at Bank accounts.
10. Property must be registered on both Husband and wife name. (As per law – after husband first legal heir is wife, after wife it will go to children only) 
11. Regular check on Nominations at all financial instruments, if not nominated, do it now...
12. Only in Insurance Policy, Claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement.
13. Must have Term Insurance to financially secure future of your dependants.. 
14.  Don’t take any financial investment decisions EMOTIONALLY, and also Avoid last minute tax saving investment decisions, plan well in advance.. 
15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim) 
16. For your jewelery LOCKER, only one lakh is payable by bank, if theft or fire happen at bank, provided insurance has been done. 
17. Like same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks up to Rs. 1 lakh only are backed by deposit insurance) 
18. Must know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments... 
19. All Financial Documents must be kept safely and keep family members informed of the same... 
20. Financial Investments must be followed through personal financial advisor...
21. Review your portfolio at every six month.

These are general suggestions, personal Finance and investment decisions depends upon case to case.

Have a Healthy and Wealthy Financial Year 2017-2018

RAJIV KAPOOR

BSc, LLb, FCS

SEBI Authorised Investment Advisor

Kanpur

9839034761

Your Attitude Is Everything

Your Attitude Is Everything

ASK AND YOU WILL RECEIVE 

SEEK AND YOU WILL FIND 

KNOCK AND IT WILL BE OPENED TO YOU

What is attitude? It a settled way of thinking or in simple terms it is feeling about something. One's attitude is a way of his life. In day to day life, we have a choice regarding the attitude we embrace for that day. We distinguish days as GOOD DAY & BAD DAY. But the reality is that a good day and a bad day is our attitude. Can we change our past? Can we change the way certain people think? Can we change what's inevitable? The answers are no definitely NOT. However, the only thing we can possibly change to deal with situations better is our attitude.

Our attitude determines the outcome of our actions. This truth is accepted by most of the successful people of the world, whether it is a doctor going for a surgery, or a businessman launching a new venture. Edge off to win or to lose is mainly depend upon one's attitude. So we can say correct and perfectly positive attitude is the key to success.

One's behavior is reflected from his attitude. Our attitude towards the other people, determines the other's attitude towards us. If one behaves politely at the other, the other may treat you politely back; while if one acts hard-nosed with the other, the other is likely to snap at him.

Every human being is the master of his own destiny. Everyone can very well control his grief or happiness, by choosing the correct attitude. One can overcome his grief with the correct attitude and also he can enjoy the pursuit of happiness. Attitude is the foundation sustaining all successful people.

You need a solid foundation to achieve goals of your life. If you are hungry for success then you must learn to overcome fear and to deal with rejection and failure. At the starting stage, you must improve the attitude which you hold towards yourself. It is very hard to engage others to believe in you, if your attitude projects something opposite. One must learn to monitor his own attitude and he should also assess its impact on your performance, relationships and everyone around you. This would definitely lead to achieve your greatest potential in life. It is well known that our mind is a computer that can be programmed. So it is on our side to choose productive program or unproductive.

Habitual bad attitudes are often the product of past experiences and events. You can go forward with an attitude talk. Attitude talk is a way to delete your past negative programming and reprogramming your mind with a conscious, positive internal voice that helps you in achieving a new higher goal.

Opportunity 'knocks' at every door. It depends upon one's attitude whether to utilize it or forget it. Proper reactions to opportunity lead to success. Every problem that we face is nothing but an opportunity, which can leads to success, by learning how to conquer it. For a person having perfect attitude, a problem is only a temporary setback. He treats these problems a stepping stone to success.

Soul of all above discussion

1. Create the Right Attitude.
2. Have consideration for the other person, and you will receive the same consideration, from others, in return.
3. Avoid criticism, especially in public.
4. Always have a positiveness while the interpretation of another. Don't get paranoid and expect the worst. It is always better to give a person the benefit of the doubt. 
5. In order to learn anything new, you need an exchange of ideas. 
6. Always be grateful for all that you are enjoying.

RAJIV KAPOOR

BSc, LLb, FCS

SEBI Authorised Financial Planner

Kanpur

9839034761 

When to start planning for retirement?

When to start planning for retirement?

A question to be questioned:

When should a person become health conscious? After becoming sick or before becoming sick or always. There are some questions like this, though at the sub-conscious level we know the answer, our conscious mind somehow acts as if it is ignorant of the obvious answer.

When to start planning for our retirement is one such question, though we know the answer at the much deeper level, somehow on the surface, we act as if we are unaware of the answer.

The problem of ignoring the obvious answer:

As we ignore the answer and behave as if we are unaware of the answer, actually the problem magnifies. A recent research study reveals this truth in black and white.

Though the retirees and pre-retirees who have been surveyed were well aware the fact that they may live longer, and also recognized that they did not want to run out of money, only a very few of them were REALLY planning financially to live longer. For example, only one-third of the pre-retirees "tried to match their savings for retirement with the expected income during retired life till their life expectancy.

That means two-third of the pre-retirees are not really planning for their retirement and they are financially not capable of facing their retirement. They have a huge gap in their retirement savings.

The Ideal and Obvious answer:

The ideal and obvious answer to the question "When to plan of our retirement?" is "as soon as you get your first job."

What? Really?

Yes. Your first job is the starting point of your journey towards the destination of retirement.  Can you travel without a clear route map and directions? If you travel without a route map and directions, you may get yourself off-tracked and deviated?

Similarly if you don't create a clear financial plan for your retirement at the beginning of your career, then you may not be able to go where you are actually supposed to go or you may need to take a lot of corrective measures to get yourself on the right track to achieve your retirement goals.

Logical Answer to our Conscious mind:

Why our conscious mind is not accepting this obvious answer? There is a lot of pain in planning for our retirement very early. Our conscious mind wants to avoid this pain. Also many of us are in the middle of our career and we have not planned for our retirement so far. If our conscious mind accepts the obvious answer, then it needs to feel guilty of not doing it early. This is an added reason for our mind to ignore this.

Let us try to convince our mind more logically.

Planning for retired life is planning to lead a life without regular income. Can we plan for 20 years of retirement in just one year? It is difficult and not possible. It is easier for anyone to plan for 1 year of retirement life in 1 year of working life.

So in order to plan for 5 years of retired life you need to plan 5 years in advance. To plan for 10 years of retired life, you need to plan 10 years in advance.

Suppose if you want to retire at the age of 60 and you have a life expectancy upto 80. Then your retired life span is 20 years. To plan and provide for these 20 years of retired life you need to plan at least 20 years in advance. That is you need to plan at least at the age of 40.

I think now your conscious mind would be able to accept this fact of life.

Recent Trends in Retirement:

Because of the increased stress levels at work and change in work culture made today's generation to think of retiring early. Today no one is willing to work till 60 years. Everyone would like to retire much earlier in life.

Because of medical advancements and positive results in field of research on stopping aging, our life expectancy is not just 75 or 80, it will also go to 85 or 90. Everyone will live longer than they anticipate.

One side, we want to retire early. On the other side, our life expectancy has increased and also will increase considerably. This increases the span of our retired life from just 20 years to 30 years or even more.

So you need to plan for your retirement 30 years before you actually retire. If you do the math, you will come to a conclusion that planning at the beginning of the career for retirement is not only ideal but also logical.

Rajiv Kapoor

BSc, LLb, FCS

SEBI Authorised Financial Planner

Kanpur

9839034761

YOUR WEALTH CREATION JOURNEY NOT SO EASY - TAKE ME ALONG

YOUR WEALTH CREATION JOURNEY - NOT SO EASY – TAKE ME ALONG

Here is a massage for all my friends who started investing in mutual funds or SIPs because they have been receiving my mails and massages. 

In recent few years, I studied so much about wealthy people, as to what are the common traits and things that makes a person wealthy.

I looked around and noticed that there are several acquaintances who created enormous wealth in past say 20-25 years.

And also there have been few others who could hardly preserve wealth they inherited.

I realized that wealth creation is not a day’s job. There is no short cut. Wealthy people are hard-working, focused, passionate, open to challenges and ready to learn and absorb new things.

So obviously wealth creation can not be just investing in mutual funds and carrying on your SIPs, it is something more. It is a long –long journey and may even take a life time.

Wealth creation is like sowing a seed, nurturing it and raising it till it becomes a strong tree. It is also that sometimes the individual who planted a tree is not there to sit in the shade or to enjoy it’s fruits.

So is it not right and logical, in that long journey one should take along someone who has already been through that road, more so when the person is professionally qualified, a friend, a teacher, a guide and who is genuinely passionate to help you.

Right now markets are on up-move and shall remain so probably for some more time.

Everyone whosoever it be ……………..  a friend, a brother, father, neighbour or an acquaintance would give his opinion on markets and may advise you to put your money in mutual funds which are inherently risky.

You know that markets are never rational and people in past so many years could not create wealth because they had no one to tell them what to do on various market levels. And they kept on doing right things on wrong times and vice visa.

So, TAKE ME ALONG IN YOUR WEALTH CREATION JOURNEY, you would not lose anything.

For you, I have an interactive portal which shows all your investments at one place letting you to have full control of your investments also there is an app which you can download from play store on your hand phone to remain in touch of your investments even on the move.

You can do online transactions and transactions through a phone call, without anyone’s assistance and much more AND above all you have ME as your trusted friend and a guide, with whom you can have friendly conversations and confide ANYTIME.

Wishing your welfare and well-being. Wishing you good Health and Wealth …………. ALWAYS.

Rajiv Kapoor

B.Sc., LLb, FCS,

SEBI Authorised Investment Advisor

Kanpur

9839034761

rajivfcs@gmail.com

This invisible inflation is quietly eating away your finances

This invisible inflation is quietly eating away your finances. Find out how

http://economictimes.indiatimes.com/wealth/spend/this-invisible-inflation-is-quietly-eating-away-your-finances-find-out-how/articleshow/58078560.cms

Rajiv Kapoor FCS
9839034761
SEBI Authorised Investment Advisor
Kanpur

SECRETS OF WEALTH CREATION - COME I WILL TELL YOU

SECRETS OF WEALTH CREATION - COME I WILL TELL YOU

As parents and as teachers we tell our children how to work hard and struggle for earning money, rarely we educate our children how to spend, how to keep, how to invest and how to become wealthy.

In fact we ourselves do not know the traits that are common in a person which make him wealthy.

Go through the Article and Video of Sadhguru, explaining that one should seek and ask and understand that he doesn't know.

http://isha.sadhguru.org/blog/lifestyle/relationships/parenting-without-nonsense/

Why is it that majority of the hard working people are not wealthy and die struggling throughout their lives??

What are the common traits that are found in almost all people who are wealthy??

Why is it more often that children of wealthy people are not so successful as their parents?? And also that they often ruin the wealth that they inherited from their parents??

The fact is that the majority of people who created enough wealth for themselves have relentlessly followed certain principles, few knowingly and few others unknowingly. Because they did never plan to become wealthy consequently they often don't really understand what made them wealthy. They think it was their hard work, opportunities and destiny that made them wealthy which is only few of the numerous factors which worked for them to make them wealthy.

I am passionate to tell people the mistakes that I committed in managing my investment and finances so that they may not do the same mistake themselves.

Want to learn from my mistakes ??? like my page, here is the link

https://www.facebook.com/rajivfcs

I love you and I care for your well-being and welfare.

Rajiv Kapoor

Certified Financial Advisor

9839034761

Kanpur

rajivfcs@gmail.com

LOST YOUR MONEY TO FRAUD OR POOR INVESTMENT DECISION ? HERE'S HOW TO SAVE YOURSELF

SHARING AN ARTICLE FROM ECONOMIC TIMES


LOST YOUR MONEY TO FRAUD OR POOR INVESTMENT DECISION ? HERE'S HOW TO SAVE YOURSELF

People who suffered big financial setbacks, either due to mis-selling or poor investments, share their stories about how they got their finances back on track.

Read more ...............

http://economictimes.indiatimes.com/wealth/plan/how-to-survive-a-financial-crisis-and-avoid-being-cheated/articleshow/57957540.cms 


RAJIV KAPOOR
FCS
Kanpur
9839034761
rajivfcs@gmail.com

CONSEQUENCES OF DELAY IN INVESTING

CONSEQUENCES OF DELAY IN INVESTING

Usually we often tend to delay investing with very nice excuses.

And we do happily thinking that few months would not matter much.

But the reality is that even small delays can make huge impact on your wealth in long term.

The secret to being wealthy is not always making big decisions but also making small decisions like not delaying your SIP and starting it right now.

You get away with this inaction because you don’t immediately see the consequence of putting your investment decisions on hold.

Please check this video to understand how delay in investing is costing you a lot slowly and steadily.

https://youtu.be/m5_KL0pa9z8

Rajiv Kapoor

BSc., LLb., FCS, CIA

Practicing Company Secretary

Kanpur

www.rajivfcs.weebly.com

www.rajivfcs.blogspot.in

9839034761

PUT IDLE MONEY TO WORK - EARN 4% MORE

Put your money to work to earn more.

Here’s a simple idea that earns practically every one anywhere between 2,000 and 30,000 extra every year. 

You don’t need to make any special effort, or take risk. Just check out how much average amount you are holding in your savings account. 

Find it difficult to estimate an average? Just look at the ‘Interest capitalized’ credit column in your account statement. 

There are usually 2 entries – one in end-September and one in end-March. If it is anything over 2,000 in a year, you are leaving too much money idle in your savings account. 

If you hold multiple bank accounts in the family, the idle money just multiplies.

The problem is simple – money in your savings account earns a measly 4% a year. Some banks offer 6%, but put so many caveats that you still end up with only 4%. 

This amount can easily earn you ~8% a year, without taking any risk. That means, if you have an average of 1 lakh lying idle, you are losing 2,000 interest every year for nothing. 

A rule of thumb is that you should be earning double the interest shown in your pass book every year.

Why do we still let money lie idle? Usually, it is because we want flexibility – we aren’t sure when we would need the money. It seems too much of a hassle to carefully keep track of the balance and do paperwork to move the money. 

Worse, we fear it will take too much time to retrieve the money when we need it.

Now, thanks to improvements in technology and regulation, all this has changed. From the anytime-anywhere comfort of your mobile, you can move money into what are called liquid funds. 

Liquid funds are basically mutual funds that park money in papers issued by government or banks.

They do not deal with the stock market, and are practically as safe as your savings account. Currently, they earn you about 8% a year. 

The best part is that when you want to withdraw, you just put an order on the mobile app. The amount gets credited to your bank account next morning. 

Now, you don’t hear about this in advertisements because your bankers / brokers don’t make any money from this – only you do!

We have customers using this to optimize returns quite well. For instance, Rajesh gets his salary credit on the first of every month, and his home loan EMI is due on the 20^th. He uses liquid funds for the intervening 20 days, and finds he earns an additional 150 every month. 

Even if you don’t want to get to this level yet, you can start in a simple way by moving excess cash from your balance to liquid funds. 

To know more .... call

Rajiv Kapoor

9839034761

www.rajivfcs.weebly.com

rajivfcs@gmail.com