New India Portfolio – The power-packed scheme for wealth creation
Indian economy is today
the blue-eyed boy of the world. All major brands are vying for its attention
and trying to get a share of what they can grab of it.
Such attention is not
just for nothing. It is because Indian economy is today the third largest
economy in the world in terms of purchasing power. And the future looks
absolutely upbeat, with it predicted to touch new heights in the coming years.
As per the global
Investment Bank, Goldman Sachs, in another two decades, by 2035, India would be
the third largest economy in the world in absolute terms just after the United
States and China. According to the Bank, Indian economy is predicted to grow to
the size of 60% of the U.S. economy.
The important steps
which really helped Indian economy to gain momentum and reach the level that it
has achieved today was initiated by the economic liberalisation. The trade
liberalisation, the financial liberalisation and the various regular tax
reforms helped in opening up a plethora of foreign investments into the
country. These foreign investments are surely here to stay for long considering
the upbeat mood in our country on the Make in India call by the Government.
When the economy is
having a great celebration, can the markets be far behind? The Indian stock market
too has witnessed substantial gains during the last couple of years, especially
since the election of a stable Government at the Centre in the last elections.
In a booming economy
and a growing market, it is only fair that the investors make hay while the sun
shines. With primary markets always a sticky ground for first time players and
novices in the personal finance field, there is no better way to take advantage
of the growth story, than by investing in the New India Portfolio (NIP).
Sceptical investors,
not conversant with the direct capital market investment, should certainly not
be losing out on the opportunity for building wealth in this booming economy. has come out with the new initiative
called NIP, a powerful set of four mutual funds, which has been built in such a
way that an investor stands to gain from the economic revival and easing rate
cut scenario. In short, NIP is the sure shot tool that is set to profit from
the power of a NEW India.
The expert mutual fund
research team at #FundsIndia has created NIP and has chosen the four
power-packed mutual funds after analysing hundreds of schemes so that an
investor is best positioned to take advantage of the revival story.
The proof of the
stability of the New India Portfolio scheme is the track record of having
generated 18% compounded annual returns on the investors’ money in the last
five years, compared to the 11% from the blended index during the same period.
In absolute terms, an
investment of INR 1 Lakh has more than doubled to INR 2.27 lakhs during the
last five year period as compared to the returns of INR 1.65 lakhs in blended
funds. Isn’t that amazing!
Who would not want to
be part of the economic reform and get their share of the pie in the growing
market? The mantra for sustained returns in the high risk-high return
predominantly equity portfolio with some amount of debt, is patience and the
willingness to hold it for long, at least for a period of five years. The only
way to achieve this is through the New India
which is just designed specifically for long term wealth
Creating wealth is not
difficult anymore too. The process is completely online wherein the investor
can purchase, track, and get advisory services and more without any paperwork.
And for the modern
generation addicted to the social media, the access to the award winning
advisory support is free and multi-channel to be accessed through phone, email,
Skype, chat and App too.
Mutual fund investments
are subject to market risks. Please read the scheme information and other
related documents carefully before investing. Past performance is not indicative
of future returns. Please consider your specific investment requirements before
choosing a fund, or designing a portfolio that suits your needs.


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Proposed Surcharge – Apne Sar pe ek aur charge
When the
Government decides to charge, they hit the nail straight on the honest tax
payer’s head. When new taxes don’t find favors, they still have their way out.
Surcharges on the existing taxes, simple and still an effective way to empty
our pockets.
Maharashtra Government’s latest bill to amend the Maharashtra Municipal
Corporation Act to allow the government to levy a surcharge on transactions of
immovable properties is the latest smart move in this direction.
And how do
they plan to go about this. The extra money that the government now plans to
snatch away from us would in all probability be introduced in the form of a
surcharge on the stamp duty that we pay on every property transaction.


So here we go,
the dear sweet home that we were eyeing for would become even dearer.
Just a 2%
surcharge on stamp duty, sounds simple and cheap! A person paying Rs.100/-
would need to pay just Rs.102/-. Not a bad deal, right? But work out the
whooping numbers. The annual stamp duty revenue of the Maharashtra Government
today stands at Rs.20,000 crores and so a 2% additional collection gets Rs.400
crores into the kitty. Simple mathematics, that’s it.
promises this money would be used to boost urban infrastructure such as Metro
Rail, Freeways and Sea-Links in various cities across the state, but how much
of it will be utilised for the real cause is anybody’s guess.
Government says it is really concerned about the farmers who commit suicide and
has plans to take complete responsibility for their children’s education and
ensure food security to their families. Seriously!
No, the
politicians are not letting go of their allowances and he freebies that they
enjoy from the Government. How could we even take such a wild guess?
When they
have gullible tax payers at their mercy, why should they worry? Who cares
whether we are agriculturists or not, but we all would now be required to pay
an agricultural tax. The government bill suggests collecting this through sale
of goods or through value added tax.
Government needs money to dig up 3 lakh wells, to create 1 lakh artificial
lakes, power connection and water pumps, they say. The leaders need to dig up
wells and ponds to hide their wealth, that’s what they didn’t say and we need
to read between the lines.
The proposed
agricultural tax is no child’s game either. The government plans to make the
tax payer poorer by at least Rs.500 crores annually over the next five years.
So let us be
prepared for another bolt on our head, another one of those Sarpe charge.


Surcharge or
VAT, hum tax payers ki lag gayi hai vatt!
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Planning for our retirement – Lambi Innings Ki Taiyari
All of us experience many events
during our lifetime, be it marriage, birth of a child, marrying off our
children, death of a loved one and so many. Some of these events bring immense happiness
and some profound sadness. Whatever may be the emotions that these events bring
about in our lives, the memory of it fades over time and we become oblivious of
the fact in such a way that it gets absorbed in our lives.


We all need to work for some or
major part of our lives to earn a livelihood and then retire for different
reasons. Reasons for retirement may vary from attained satisfaction to not
being able to work any further due to ill health or just the compulsory
retrenchment due to attainment of a certain age.


Oh retirement!
Retirement is perhaps one of the
most important events in our life that we may ever experience.  Of course, we all wish to retire comfortably,
but how many of us really achieve the privilege of doing so considering the
complexity in building up a retirement plan built up with extensive and
sensible planning and years of persistence.


A little homework, a systematic
and attainable savings and investment plan and of course a long term commitment
is all it needs to ensure that you carry it well into your golden years.
Do I need to plan?
For many of us who are earning a
decent salary with an even decent and seemingly reasonable savings in our bank
account to splurge on necessities and luxuries alike, this may seem to be a
trivial question.


Though we may consider ourselves
to financial wizards in our own count, what we don’t realise is that our
popular belief about the best way to save for the future could be totally
contrary to what the key components of retirement planning properly implemented
should be to guarantee a financially secure retirement.
The flexibilities of life to deal with
Life surely tends to keep
throwing us a curve ball every now and then. It may be a Googly, a Doosra or
may be a Yorker, but we need to be prepared well to face the ball as it comes
beaming at us. These spinning balls may be in the form of unforeseen illness,
the financial needs of our children or dependents or the uncertainty of the
returns from risk bearing investments.


Life’s unpleasant uncertainties
force us to maintain a secure nest egg. This nest egg is what will help in
smoothing out the financial hiccups over the long run, so that we are not
forced to liquidate our assets to cover our expenses during our retirement
years. This golden egg will only ensure that rather than leaving a financial
legacy for our loved ones or worse still, becoming a financial burden on our
family, we can rather contribute to our children and grandchildren’s lives, be
it by splurging on their luxuries and needs, financing their education, by
gifting a portion our nest egg or just simply ensuring that the estate and
assets that we built up painstakingly are passed on to them in inheritance and
on which we assign so much sentimental value.
How would I know how much I need to retire?
At a first glance, this so much
relevant question seems to be unanswerable, plainly because the amount of money
we would need depends upon a number of factors including our desired standard
of living, our expenses, our medical needs and most importantly our target
retirement age.


But just a little thought
applied, all these seem so simple like a mystery unfolding by itself. If we
pose a few questions to ourselves and try to answer them, it becomes so much
easier to determine the reasonable money needed for our retirement needs.
We just need to answer for
ourselves a few simple questions and they would be:
(a)    When
do we plan to retire, i.e. at what age?
(b)   Assume
or decide how much monthly income we would need to sustain at present level of
(c)    Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(d)   Total
up all our current savings and investment which earn us regular returns.
(e)   Determine
the monthly real rate of return on our investment today.
(f)     Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(g)    The
resultant figure is what we need for our monthly expenses post retirement.
If the resultant figure in (f)
above is equal to or more than the figure in © above, then we are securely
planned. If it is negative, we need to worry, for we are short planned for our
From where will this shortfall money come from?
We have mentioned earlier and at
the cost of repetition, we repeat that we are earning a decent salary with an
even decent and seemingly reasonable savings in our bank account to splurge on
necessities and luxuries alike.


We just need to cut down on the
little luxuries a bit, maybe skip that extra movie a month, or that one
additional dine-out at the fine-dine restaurant, expenses which are dead cost
not providing any returns financially, and just deploy these finds in
reasonably moderate risk but decent returns yielding investments.
Here comes Reliance Retirement Fund:
This is an open ended notified
tax savings cum pension scheme managed by highly professional fund managers who
would invest the corpus in open income oriented funds giving us the benefit of draw
down as required during retirement.


Its advantages! Oh! There are
many, but few to list out here, it is a tax efficient SWP, has the potential to
grow corpus over time thus providing a scope for better returns. The
investments primarily focus on income generation, growth assets for fighting
inflation and enable draw-down without depleting the corpus.


Talking of key features, it
1.       Unlimited
switch between schemes
2.       Bare
minimum exit load of 1% on redemption before the age of 60, subject to a
lock-in period of just 5 years.
3.       Auto
transfer facility where the entire investment can be switched from wealth
creation plan to income generation plan according to our needs.
4.       Facility
to accumulate using both SIP and lump sum over the earning years.
5.       Facility
to use systematic withdrawal plan (SWP) to use only what is needed after



The nagging Question, Can I afford it?
Reliance Retirement Plans by Reliance Mutual Fund answers the nagging question by explaining that it just takes a little sensible planning and a happy retirement is well within the reach of most of us. 

A little planning and we ensure that we need not spend our retirement days living frugally, whereas we can make it a life of joy and dignity, filled with the thrill of discovering new things, and pursuit of new interests and passion. In short, a second innings in our life, when we play the doosra, the googly, the yorker or the beam-ball with utmost comfort and dispatch it to the boundary with disdain.

The Bloggers Meet:

Reliance Capital Asset Management had joined hands with BlogAdda wherein select bloggers were called upon to be given an introduction to the various retirement plans.

Image courtesy: Blogadda and fellow bloggers

It was truly an amazing interactive session with the top brass of Reliance Capital led by the ever-cool Mr. Sundeep Sikka, CEO,  the self-admittedly over-dressed but absolutely flawless Mr. Himanshu Vyapak, Deputy CEO, Mr. Ajay Jethi, CMO and Mr. Sharad Goel, CCO taking pains to lucidly explain the juggernauts of how to save early to retire happily to the largely young crowd of bloggers.

Image courtesy: BlogAdda and fellow bloggers

It was a very knowledgeable session with veterans like me or novices like my daughter and the other bloggers present understood  the simple tricks of planning for retirement.


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