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'I became a successful CEO at 30'
December 03, 2007 (http://www.rediff.com/getahead/2007/dec/03anil.htm)
How many of us can think of retiring at 30? & actually achieve it?
If you are Anil Rego, CEO of Right Horizons, an investment advisory & wealth management firm in Bangalore,
now Bangalore, then it is eminently possible.
The Right Horizons CEO spoke to rediff.com's Prasanna D Zore about his passion for investments, the challenges he faced while
starting Right Horizons, & the qualities that are needed for a person to build a successful business. &, of course, how he retired at
age 30!
How did you succeed in retiring at 30? When did you decide to establish Right Horizons? Was it a struggle --
what disappointments did you have to cope with?
“I'd always wanted to be an entrepreneur. My plan was to retire from corporate life & start on my own by 35 years, even before I joined Wipro. I had set
myself a target of hitting a certain capital required for the family's monthly expenses, which I hit earlier & hence 'retired' & started 'Right Horizons' at 30
years. This was possible because of planned & regular investments, right from the start. In fact, I had to plan for it in innovative ways, since there was no
pension plan starting at 35! I felt that there was a need for a one-stop-shop for all my financial needs. I spent too much time working with multiple players. I
also found there was no one taking care of investors across financial planning, taxation, multiple investment avenues, tracking & providing regular & online
reporting. Most of the advisors did not have a financial background, which I felt was important even in insurance, which has evolved into market-linked
instruments. I have tried to build those features & benefits, which I was looking for as an individual investor, into Right Horizons. I also believe that Indian
equities should provide phenomenal returns & I saw this trend early & took advantage of the opportunity. Since I started at the right time, the journey has
been fairly smooth. The biggest challenge we had in initial years was to attract good, quality talent, which is a prerequisite to success in any business.
Give us a brief sketch of your career in the industry & the company you worked with before you founded your own company.
I did my CFA/MBA from ICFAI Business School, Bangalore. My first job with Wipro InfoTech (now Wipro Technologies), as a business-planning manager,
happens to be my last job as well. I had a reasonably long tenure at Wipro -- of around 7 years. After my stint in business planning, I was part of the initial
merger & acquisition team of Wipro. During that spell, I realized that we are so busy with our work that we tend to neglect our own financial management.
That's where the thought of Right Horizons was born.
Did you always have a passion for investments? When did you start investing?
Investments were always my passion. In fact, I started investing when I was studying in pre-university. I took money from my mother & started, after which,
I never looked behind. When I took up my career, the only course I applied for was the CFA/MBA. However busy & hectic the schedule was at office, I used
to keenly watch & invest in the market, with most of my research being done late in the night.
When faced with a new challenge, how do you set about taking it on?
I have always set my goals first & then planned how to get there. We have taken up very challenging goals & have achieved them in reasonable time. The
most common reason for failure, in my view, is the low priority given to 'tracking' one's progress. •When we normally set out, we also need to outline param-
eters that we will track.
What kind of criticism have you faced in the course of your career, & how have you learned to deal with it?
There were a lot of skeptical people, who felt I was making a big mistake by moving out of a great company, with a fantastic salary & growth prospects. Also,
the investment field was full of individual advisors, & many vendors wanted to meet up with me initially out of sheer inquisitiveness. In our business, com-
petition comes at various levels -- from unstructured individual agents & advisors, from large banks & financial institutions, & at the high end from multina-
tional banks. I remained focused towards building an organization in a highly competitive environment, & that seems to have paid-off.

What qualities set apart success stories like yours from the average?
The factors that have helped us achieve what we have are:
~ Always dream & work towards converting your dreams into reality.
~ Formulate a plan to achieve your dreams, & more importantly, track it.
~ Do what is right for the customer -- for example we have always believed in doing what is right for the customer even if it has a revenue impact on us. My
view is that in the long term, this is what will create value for us, as the customer sees the difference & remains with us for life.
~ Have passion & focus in what you do -- when you know what you are doing, & you enjoy what you are doing, this comes automatically.
~ Hard work -- I am always on the job. Work as a team: Alone, one can only do so much.
Did you have a mentor, & if so, how did he/ she inspire you to steer your career in the right direction?
There are a lot of people & companies that have inspired me. As I would think for most investment professionals -- Warren Buffet, Chairman, Berkshire Hath-
away -- has been inspiring. Mr. Azim Premji, chairman of Wipro, has also been a source of inspiration in terms of importance given to time, attention to
detail, emphasis on process & quality, & his drive for cutting unnecessary costs. I have admired companies like Infosys for their strategic thinking & determin-
ing the course of the company a lot in advance, through great planning. Also, Mr. Narayana Murthy for building an organization that is not dependant on any
one individual & the wealth building across all stakeholders.
How has your career impacted your personal life? Do you feel like you've had to sacrifice a few personal pleasures in favors of your job?
Despite hectic work hours, I do spend quality time with my family. I come home a little early & spend time with them in the evenings & then start my 'second
shift' work from 9 pm to about midnight.
Having come such a long way in your career in such a short span of time, what do you think remains to be achieved? Which dreams are
yet to be realized career-wise?
At this time, I want to only focus on Right Horizons. In the future, I would like to set up a seed capital fund to help other entrepreneurs achieve their goals &
work on social causes. Currently, we provide senior citizens free, tax filing, etc. I would also like to work toward helping with the education of poor children.
What tips do you have for today's youngsters looking at wealth management as a good career opportunity?
It is great career path to take because the amount of learning it provides. Since it is across multiple areas like taxation, financial planning, etc & works across
multiple products like insurance, mutual funds, equity, etc, anyone who has built up a good knowledge across these verticals, is difficult to replace. This pro-
vides great career growth, both monetary & non-monetary.
What makes Right Horizons a great place to work?
Creating a common vision with the employee: Employees are part of decision making, sharing of company plans & strategies with employees Providing an
environment of learning & providing challenging roles: High learning through continuous & in-depth training provided by top management on a regular ba-
sis, providing opportunity for leadership. Compensation, reward & recognition programs -- both monetary & non-monetary: Competitive compensation, peri-
odic recognition of outstanding performers, team parties/offsite team building get-togethers, & wealth-creation program. Creating a family environment: Not
much hierarchy, informal interactions, assisting team on personal issues.
Can you tell me more about Right Horizons?
Right Horizons is an end-to-end investment advisory & wealth management firm that focuses on providing a solution that is specific to customers' needs. It
works towards understanding financial goals of customers & helping them to attain those goals. Our effort is to free the customer from her/his financial mat-
ters, & to help them achieve their dreams. We follow a de-risked financial model & though we use higher risk avenues, we do so on a lower risk basis. We have
a unique corporate help desk model where we do educative presentations on taxes & investments, set up support helplines by mail & phone, set up daily
helpdesks on campus for employees, manage a section of their intranets -- we have experience in doing this for a corporate with over 50,000 employees
across multiple locations. We have branches in Bangalore, Hyderabad & Chennai & have grown to be 50 strong, in less than 4 years.

Financial Planning
Sep 29, 2014 | Source: Money Control
Financial advisors are people who work and help their clients in
achieving their financial goals by effectively channelizing their
savings into investment and also give financial advice. An indi-
vidual, firm or organization that provides this service can be
called as a Financial Advisor. . A financial advisor is a qualified
expert who can give advice a person regarding his investment
portfolio and also help in improvising his financial health. The
main functions of a financial advisor are:
• To allocate your funds between various investment avenues
in order to achieve your financial goals.
• To figure out ways in which you can save on taxes.
• Help you achieve your financial goals based on your cash
flow and savings.
• Give advice on investment avenues you need to choose at
different stages of your life in accordance to your income level
and financial goals. -
Generally people call their financial advisor when they need to make money deci-
sions, especially those pertaining to financial goals, investments, etc. Some of the
top reasons that one will call their advisor are:
• To get information on the various investment avenues available.
• To understand the current market condition and likely future market situation.
• To help plan one's finances, create a risk profile, and help in designing a portfo-
lio.
Financial advisors examine the financial history and current status of their client's
assets and liabilities to suggest the steps their clients need to take in order to meet
his/her goals. It is a broad-based approach towards ones overall financial planning
which distinguishes them and their service offerings from other finance profession-
als.
Financial advisors determine how their clients can meet lifelong financial goals
(like retirement planning, purchasing a house, saving for marriage, etc.) through
management and investment of their resources. - While choosing a financial advisor
know what type of service you are looking for, as this means the difference between
an independent financial advisor or restricted financial advisor.

Key takeaways:
 Financial Advisor will be helpful in giving a true and unbiased advice
 Choose your Financial Advisor diligently
 An advisor can guide you in maximizing your Post Tax take home by maximizing your tax saving
An independent financial advisor provides advise on full ranges of invest-
ment product available across the market - stocks, mutual funds, insur-
ance, pensions, fixed deposits, etc.; whereas a restricted financial advisor
will provide advise only on certain types of products available in the mar-
ket (eg., only annuities) or recommends products from a very limited set
of providers – these financial advisors are typically attached to a bank or
financial institution. Independent financial advisors are typically more
reliable since they do not represent certain financial providers; rather they
work for a fee – making their interests more aligned to the financial well
being of their clients.
Financial advisors are critical to one's financial plans, since there are
several factors to be considered while making a plan, and as individuals
we are likely to be unsure of some aspects of good financial planning.
Also, a financial advisor will be able to assess your risk profile, and sug-
gest a model portfolio based on your goals and risk profile – making it a
customized/tailor made investment plan for you. Unless one is a financial
professional, it is difficult to do this by oneself. A good financial advisor
is the key to a good financial plan.
It is important that you choose a financial advisor who is well qualified
and authorized to provide financial advice, i.e. ideally they should be a
certified financial planner. One should also keep in mind their fees struc-

6 best ways to save tax…...
A tax plan is not only to save taxes, it should
also assist you in achieving your other finan-
cial goals such as buying a home, a car, chil-
dren’s education, retirement to name a few.
Here are some top ways in which you could
plan for your tax savings
Tax planning is a very important step towards securing your finan-
cial future, and there are several ways ranging from tax saving
instruments, to donations to charitable organisations, to health
insurance and so on.
While a certain tax outgo is essential, one can benefit from various
schemes offered by the government to save on taxes.
For example medical expenses of dependent parents, interest on
housing loan and loan for home renovation, are tax deductible over
and above the 80C limit of Rs 1 lakh.
Health insurance
Premiums paid towards a health insurance policy qualifies for a
deduction of Rs 15,000 for an individual and Rs 20,000 for a senior
citizen under section 80D (If one’s dependent parents are below 60
years of age you get an extra deduction of Rs 15,000 and if they
are older you get Rs 20,000). If your premium is less than Rs
15,000 you can claim a deduction of up to Rs 5,000 on account of
preventive health check-up.
Equity-linked savings scheme (ELSS)
If you are planning for the long term and can stomach short-term
volatility that stock markets bring to your portfolio, equity invest-
ments are the ideal investment choice. Investments in ELSS offer
Public Provident Fund (PPF)
PPFs are another good method to invest and save tax, as they give a return of around
8.8 per cent, and one can avail a Rs 1 lakh deduction from investments under Section
80C. Maturity proceeds are tax-free as well.
Fixed deposits
There are notified FDs of five-year tenor or more that also give you the 80C deduc-
tion. The interest is taxable though. So it works if you are in the lower tax bracket or
need an assured income in the short term.
Life insurance
If you are married and have kids, risk cover is something you must consider. The
premium that you pay qualifies for a tax deduction so long as the sum assured is at
least 10 times the annual premium. This is very important, and ideally one should
have a minimum of ten times their yearly income as the insured amount, i.e. if one’s
annual income is Rs 10 lakh, one should have a minimum insurance cover of Rs 1
crore. Other factors such as age, medical condition, etc, also play a role in deciding
the life insurance policy, which can ensure the financial stability of your family.
Housing loan
Individuals intending to buy a house should consider opting for a home loan. Interest
payments of up to Rs 150,000 per annum are eligible for deduction under Section 24.
In cases where the home loan is for a substantial sum, it is not uncommon for the
interest and principal repayment to exceed the stated limit.
To ensure that the tax benefit is optimally utilised, an individual can consider opting
for a joint loan with her/his spouse or parent or sibling. This will ensure that both the
co-owners can claim tax deductions in the proportion of their holding in the loan.
The co-owner falling in the higher tax bracket should hold a higher proportion of home
loan to ensure that the tax benefits are maximised.
Key Take aways :
 It is advisable to under-
stand one’s risk appetite
and investment horizon
prior to selecting a tax
saving instrument
 One should always opt for
a judicious mix of differ-
ent kind of investments to
benefit from better re-
turns, while saving tax
 Each instrument has posi-
tives and negatives, study
these carefully before
locking in your money in
any one instrument
Dec 28,2014| Source: Money control.com

Taxation
Union Budget 2015: Nothing meaningful as compared to what was expected
Finance Minister offered few tax benefits in Union Budget to the tax payers as compared to what was expected by them
Indian Budget is always high on expectation with the audiences from different groups like industrialist, entrepreneurs, tax payers and citizens. With the improving credibility of
Indian economy along with strong expected growth and tripping inflationary pressure, on the personal finance front it was expected that the government will roll out bundles of
measures which will ultimately benefit the taxpayer and the citizens of India.
Amidst the list of expectation which people had from the budget, only few of them were fulfilled. One of the most important segment of tax - tax slabs, which was expected to
be revised upwards. However government did not make any changes to the tax slabs which were revised during previous budget. Considering the strength in the current econ-
omy, a reduction in tax liability by changing the tax slabs would have left additional amount in the hands of tax payers which could have been channelized as investments or
consumption.
Also considering the importance of infrastructure growth, it was assumed that there would be additional benefits for the home buyers as well as existing borrowers of home
loan, however tax provision on housing loan remains unchanged.
Following were few of the measures which were announced by the government today as a part of the Budget 2015 – 16.
1. Transport allowance which was earlier Rs. 800 per month has been revised to Rs. 1600 per month this would be beneficial considering the rising cost of transportation
especially in cities.
2. Sec 80 D comprises of premium paid towards Health Policy/Medical Premium. Earlier the limit of deduction u/s 80 D was Rs. 15000 which has now been enhanced to Rs.
25000 and in case of senior citizen the same has been revised to Rs. 30000. This measure will not only boost healthcare programs but will also provide additional tax benefit to
the tax payer.
3. An additional deduction of Rs. 50000 has been allowed for investment in New Pension Scheme u/s 80 CCD.
4. The budget has proposed to reintroduce Tax Free bonds. Tax free infrastructure bonds are proposed for projects in rail, road and irrigation sectors.
5. The wealth tax has been replaced by additional surcharge of 2% for people who have income higher than Rs. 1 Cr. Thus this will lead to higher tax outgo. From personal
finance perspective, budget 2015 – 16 had very limited measures as compared to what was expected.
Mar 03, 2015 | Source: Moneycontrol.com

May 17th, 2013| source Financial chronicle

NRI’s …... Aug 12, 2014 | Source :Financial Chronicle

Aug 15 2014 | Source: Khaleej Times

Key takeaways:
 Stamp duty and registra-
tion fees for purchasing a
house is eligible for tax
exemption
 The most important
difference in tax breaks
for home purchase is that
It is not a continuous and
recurring benefit but it’s a
just one time bonanza
Real estate
Jan 21st 2015 Financial Chronicle

Key Take aways:
 Choose the prime
location and check
for available ameni-
ties around your
property.
 Know the resale
value for your real
estate investment.
 Check all the legal
aspects before buy-
ing a house
Get Your Dreams Real With Investing In Real estate
Things to consider before buying a
new house
Source: IRIS (08-SEP-14)
The biggest dream for any individual in India is to own a
house. Usually people spend most of their hard earned
money to buy a new house. Buying a house is in-fact a
onetime investment which needs good adequate plan-
ning before deciding to spend a major part of ones
savings. Following are some of the things you need to
consider before buying a new house:
Select the right property:
Analyze whether you want to buy a new property for
residential purposes / commercial purposes or for long
term usage/short term usage. Do some detailed re-
search on real estate scenario in the location you prefer
to buy a house. Also it would be smarter if you could
take some advice from real estate consultants, as they
are in the market and would know what kind of house
can fit in your budget in accordance to your taste &
preference.
Start with the budget:
Having a budget is crucial, and although you might plan
to have your dream house - be it with a garden or a
fountain or filled with the latest technology, it should fall
within your budget - and this should be based on how
much you can afford. Check whether your income per-
mits repayment of the monthly EMI and other expenses
before making plans on the type of house.
Choose the desired location:
It is important to buy a new house at the location of your choice. You can
buy house at any place - it may be rural or urban, but what matters is
whether the location chosen is good for you. Buying a large house in a
rural area won't help you if you happen to have career and family in the
metro city. Also, check for amenities like linkages to major roads, water
connections, sewage system, electricity supply, shops, schools, and
hospitals in the surrounding areas before narrowing in on the location.
Look for resale value:
As real estate investment is a large investment, make sure that this will
not be depreciating in the future. The resale value for property differs
from area to area, and it is advisable to know this before hand - check
with a realtor if you need to. Also it is important for you to know the devel-
opment projects happening in and around your desired location of invest-
ment, since cities are constantly expanding and huge infrastructure de-
velopment is on the map. This will make it more likely that your property
will be worth more in the future.
Check for legal aspects:
Checking the legal document/agreement before buying the house is a
mandatory task. This will prevent buyers from massive issues later on.
Make sure that the property is free from any kind of liability, whether it is
registered legally and also if it is approved by the government. If it is an
older property, one should also check if all taxes, electricity bills, etc.
have been paid and there are no statutory dues. One should also check
the size and measurement of the property in the agreement as well as
the title deed & official seal, etc., before buying the house.
Contributed by Anil Rego, CEO & founder, Right Horizons

How good is the
National Pension
Scheme in India
for long term
investment?
Key takeaways:
 A key advantage of getting ex-
tra 50000 Rs under sec-
tion80CCD (1B)
 Individual in 30% tax bracket
will be able to save up to
15450rs on tax
Mar 23, 2015 | Source: Times of India

Key takeaways:
 A key advantage of getting extra
50000rs under section80CCD
(1B)
 Individual in 30% tax bracket
will be able to save up to 15450rs
on tax
 Investment options are available
 For investor who doesn't decide
asset allocation NPS is a good
option
Mar 9,2015 | Source :Economic Times

Guide to financial freedom
Anil Rego
Right Horizons
College days are the beginning of Financial Freedom yet with limi-
tations, as most of us rely on our parents for pocket money. Every
student faces a situation of cash crunch and a desire for luxurious
spending. In such scenario one has two options either to limit the
expenses to the available funds in terms of pocket money or gen-
erate additional sources of income which can support additional
luxurious expenses. Smart management of finances plays a very
crucial role in one’s life irrespective whether a person is a student,
working professional or a self employed.
Here are a few financial tips/dos and don’ts:-
1. Weekly & Monthly Budget
The first step in financial planning is budgeting. One can start with
weekly or monthly budget. There are two components of a cash flow
(Income and Expenses). Income is limited to pocket money hence
one needs to figure out how to spend the same. Prioritising will play a
crucial role, as it will help to focus on those expenses which are re-
quired and need to be fulfilled on urgent basis. However this exercise
can be done in a simple way, have a track of your expenses in either
an excel sheet or one can also have the same on a mobile app.
Thanks to the technology many apps are available freely which will
help to maintain ones finances.
2. Avoid impulse purchases
Impulse purchase can be classified as an unplanned expenditure.
Research states that feelings and emotions play a very important role
in case of an impulse purchase, which gets triggered on seeing a
promotional ad, offer etc. however the point is such unplanned ex-
penditure always have a burden on ones finances; thus an individual
should be careful. It is always advisable to carry a list of items to be
purchased which will be helpful in buying unwanted products and
thus save on expenses.
28 Oct, 2014| Source Money control.com

3. Develop savings habit
It is said Every Penny Saved is a Penny Earned; it is advisable
to inculcate savings habit every week/month. The savings shall
be invested in a savings account. This will help to build the dis-
cipline of savings and investments right from the early age. In-
vestments work on compounding principle i.e. interest earned
from such investments will help to earn income – thus in long
run your money will work for you instead you working for mon-
ey.
4. Part time earnings
With the expansion of the internet era, one can easily look out
for part time jobs online. One of the most prominent ways is to
find out online freelancing jobs which will provide opportunities
to work from home.
5. Scholarship in colleges
Usually colleges provide opportunities to student in form of
scholarships based on previous academic records, or if one
scores above the benchmark level set in the current academic
year. Such scholarship not only helps to reduce the cost of edu-
cation but in certain cases provide an easy finance which will
help to reduce the other expenses, especially in case where a
Key Takeaways:
 Have a monthly budget for both income
and expenses
• Take up a part time job which will enhance
your savings and investments
• Open an SB A/c and develop savings habit
• Take benefit of students scholarship
7. Students discount
Many companies, travellers provide additional discount to stu-
dents. For example Indian railways and many airline companies
in India provide such discounts to students on travelling. Stu-
dents should utilize such benefits as it will help to reduce the
expenses and every savings can be channelized as invest-
ments

First job ;Tensed ?? :Here's what to do
Anil Rego Right Horizons
First job is a very important milestone in one’s life - no longer is
one a student, but you are earning, and with it comes financial
freedom. However, it is important to keep in mind that this is only
the first step towards financial planning and meeting your goals
and dreams. One should be aware that once one starts earning
there are certain financial plans that have to be made to ensure
financial security in the future.
Planning your finances from the time you start earning will en-
sure that your savings benefit from the power of compounding.
For example, if a 25 year old saves Rs. 5,000 per month at 10%
interest, your corpus will be around Rs. 1 Cr when you are in
your mid fifties. On the other hand, if one starts savings Rs.
5,000 a month at 30 years (with the same 10% interest), the
corpus after 30 years will be only Rs. 60 lakhs. Hence, it is ad-
visable to start allocating money towards savings & investments
as early as possible.
The first step to your financial plan is to prepare a budget based
on both current and expected income and expenses. It is very
important to understand and monitor one’s cash flows, i.e. from
where the cash comes in and where it gets expended. With re-
gards to income one should also be sure of how long that partic-
ular income stream will last. Also it is very important to factor in
inflation into the budget. If your income exceeds your expenses
The next thing to do is to chart out your goals, such as buying a
house, marriage, etc. Then split these into short, medium and long
term goals. One should also take a deeper look at one’s invest-
ment personality and assess how much risk they will be able to
bear. Based on these two factors, one needs to make a financial
plan.
This financial plan will then give you an idea of when you need
how much, and based on this, one should prepare an investment
plan - to ensure that short, medium and long term goals are met.
There are various avenues of investing one’s hard earned money -
be it stocks, mutual funds, real estate, debt, or even in art. Irre-
spective of the type of investment, one should try investing in the
best option for them - as better (tax efficient) returns will lead to
more wealth in the future. I
t is advisable to invest on a monthly basis (through a systematic
investment plan/ systematic transfer plan), as this will give one the
double benefit of regular investment & compounding as well as
negating the possibility of overshooting the budget and hence de-
laying one’s savings. Ideally, one should automate this process to
avoid any last minute delays in investing. Automating the invest-
ment process by a direct bank transfer to a mutual fund/ recurring
deposit/ etc. will help in ensuring the savings objective is met and it
also curtails the number of impulse spends - keeping you within
budget.

Insurance is another area which is often neglected. This is very im-
portant, and ideally one should have a minimum of ten times their year-
ly income as the insured amount, i.e. if one’s annual income if Rs. 10
lakhs, one should have a minimum insurance cover of Rs. 1 Cr.
An important aspect of building wealth is tax planning. One should con-
sult with a tax expert to see the best investment & savings avenues
through which one can save on taxes. While a certain tax outgo is es-
sential, one can benefit from various schemes offered by the govern-
ment to save on taxes, for example school tuition fees of children, medi-
cal expenses of dependent parents, interest on housing loan & loan for
home renovation, etc. are tax deductible over and above the 80C limit
of Rs. 1.5 lakh.
Key takeaways:
 Have a monthly budget for both income and expenses
• Take up a part time job which will enhance your savings and investments
• Open an SB A/c and develop savings habit
• Take benefit of students scholarship

Takes two to tango: Involve spouse in financial planning
Managing money as a couple requires a lot of planning
since it is no more about a single individual. Certain
families have only one working member whereas, in
others, both the husband and wife are employed. Either
way, managing expenses efficiently and investing the
surplus is the key to good financial health.
While some people are hesitant in bringing up money
matters to their spouse, it is crucial to do so. Both part-
ners must know what their expenses are and how they
can deploy their surplus in an efficient manner. Feel
free to talk about financial goals with your partner. If
you require help in these matters, seek the advice of a
professional financial planner.
One should be aware of all sources of income; if both
partners are earning, it is advisable to talk about in-
come and expense patterns with each other. If you
happen to have only one source of income, it is advisa-
ble to spend carefully early on and invest regularly to
build a retirement corpus.
Every couple should ensure that basic financial information, such as bank
details, loan schedules, credit card details and pins, insurance, etc., are
shared with each other. One of the best ways to keep your spouse in the
loop about finances (even if they do not understand them well) is to main-
tain proper files. For example, you can have one file for all bank docu-
ments, which include bank statements, cheque books, and debit and
credit card information, and another for investments in various instru-
ments, and so on.
Make a budget
A budget can help you plan your finances. If you stick to your budget each
month, you will be surprised at the benefits. It is likely that you will end up
with more money in bank each month than you thought was possible. The
budget should also take into account the spending pattern as a couple.
Expenses should be divided into discretionary and non-discretionary,
which will help cut excessive spending. Once you have prepared the
budget, take into account various financial goals, such as retirement, child
education, building a house, vehicle, etc, and prioritise them. After this,
you need to allocate funds towards each goal, partially or completely,
depending on net investable surplus.
Have a contingency fund
It is advisable to have a contingency/emergency fund to dip into during
unforeseen circumstances. This will shield the individual/couple financially
in case of any unfortunate event like loss of job, sudden increase in ex-
penses, etc.
19 Sep, 2014 | Source : Financial express

Diversify
A diversified approach to investing is the key to
wealth creation. Various asset classes can be con-
sidered depending on your risk appetite. An effi-
cient mix is what will help deliver a good return.
A systematic investment plan (SIP) into equity
mutual funds is one of the options. SIPs give one
benefits from both an up-market as well as a down
-market. Those investing through SIPs tend to
purchase more units when the market falls and
fewer units when it rises. The average cost per unit
declines over a period of time, thus being an effec-
tive tool of risk management. Also, have a term
cover in place, which will take care of the family's
financial needs in case of the unfortunate demise
of the bread winner.
The writer is CEO & founder, Right Horizons
Key takeaway:
 While some people are hesitant in bringing up money matters to their spouse, it is crucial to do so.

Money Management
Financial chronicle 21 march 2015

Money is What Money does
13th March 2015|
Source :Financial Chronicle
Key takeaways:
 Choosing an asset class that will not only offer good
returns but also help save tax will enhance overall re-
turns, thus making it easier to achieve your goal.
 The tax saving that you get also enhances your take-
home, which in turn allows you to invest more towards
your retirement.

Making a will online saves money, time and is legally
valid too
August 28, 2014 |
Source Business Standard
Making a will is the easiest way to
ensure your assets are passed on
to your heir/s in a smooth manner.
For this, one can opt for an online
version (e-will). This service is of-
fered by specialised websites for a
fee, often much lower than that
charged by lawyers.
One may either use the standard formats available on these websites or
be asked to fill the details of the assets and heirs.
Based on this information, a draft will is prepared, which one has to ap-
prove.
To ensure these wills are legally sound, these websites have tie-ups with
experts.
Anil Rego, chief executive and founder of Right Horizons, says for an e-
will, only the initial steps are in an electronic format---the person making
the will fills details such as those related to family, assets and the manner
in which the assets are to be transferred.
After finalisation, a hard copy of the will is prepared and given as proof. If
needed, these wills can be updated.
“Compared to a physical will, an e-will offers the benefits of simplicity, ease
in payment and ease in drafting,” says Rego.
But are online wills valid? And, if contested in court, will these be deemed
legal? Neha Pathak, vice-president and head (trust and estate planning),
Motilal Oswal Private Wealth Management, says, “Any will can be contest-
ed in court, whether it is an e-will or one drawn by a lawyer. It is valid as
long as it is signed by two witnesses. Then, it will stand in court.”
So, ensure the e-will is signed by two witnesses. Approaching a lawyer is
helpful in that one has someone to consult in case of doubts; this might not
be the case in the case of an e-will.
Also, it is vital to mention details such as the assets for which the nominee
gets precedence over the legal heir, and these might not be stated in an e-
will. As e-wills are typically standardised, these might not be feasible if you
have too many assets or if the holding structure of the assets is complex. In
such a case, it is better to approach a lawyer, says Pathak.
For an online will, the charges are as low as Rs 4,000, compared with Rs
25,000-Rs 1,00,000 charged by lawyers. While it isn’t compulsory to regis-
ter a will, in some cases, a website might insist on this if the assets involved
are worth, say, Rs 1 crore (Rs 10 million) or more. Though it isn’t mandato-
ry for a will to be written on stamp paper or registered, registration lends
authenticity.
“It is advisable to have the will registered to avoid any disputes with respect
to its authenticity,” says Rego. For this, the person making the will, along
with the witnesses, have to go to a registration office and carry out the pro-
cess in the presence of the sub-registrar, he adds.

Should I go for zero per cent cash advance on credit
Anil Rego
Right Horizons
Credit cards have made our life much easier by giving us a cash
free payment method and interest free credit period. However,
there is also a downside, in that if one is not careful and spends
more than one can repay, then the interest is substantial - with
many card companies charging interest rates of over 20% p.a on
outstanding balances. This high interest can cause you to get
into a debt trap, and it is advisable to be careful when using
credit cards and ensure that you spend only what you can repay
at the end of the month.
Most credit cards give you the option of withdrawing cash against the
card, in an attempt to assist people in need of urgent cash - this how-
ever is done at an interest, sometimes as high as 24% p.a., and the
interest (unlike typical credit card swipes) is calculated from the date
of cash withdrawal. So for example, if you have a credit limit of Rs. 5
Lakhs on your card, and you withdraw Rs. 50,000 against this at an
ATM, you are liable to pay interest on this Rs. 50,000 at a rate of
between 1.5% - 2% per month! Meaning that this is one of the most
expensive forms of debt, and should be used only in cases of ex-
treme emergencies.
Now, there are a few card companies that have introduced 0% cash
advance schemes on their cards, especially for new customers. The
idea behind this is to give you cash when you most need it without
any hidden interest rates. However, one must keep in mind that this
cash advance is for a short time frame only, typically one has to re-
pay this within 12 - 18 months (depending on the credit card compa-
ny). Once you cross the time frame to repay the money, the interest
component kicks in at around 1.5% - 2% per month and is calculated
at an compounding rate.
Let us look at an example, if you have taken a cash advance of Rs. 2
lakhs on your card, this amount is interest free in your hands for the
first 12 months (assuming that your card company has a tenure of 1
year for this scheme). On completion of the 12 months, i.e. 13th
month onwards, if you have not repaid any portion of the money.

you will be charged an interest of ~Rs. 4,000 for the first month,
which will compound to Rs. 4,080 in the second month and so on.
Assuming you repay the loan on the 20th month, you would have
to bear interest of ~Rs. 35,000 (for an interest bearing period of
only 7 months!).
However, if you are able to repay the loan within the given time
frame, then there are no issues, and the only cost you will need to
bear might be a nominal processing fee. It is prudent to however
still use this as a last resort, since if for any unforeseen event one
is unable to repay the advance by the due date, the interest per
month is substantial - which can lead to even further repayment
issues.
Also, the interest component is determined by one’s credit score,
and if one has a bad credit history, the 0% scheme may be appli-
cable for an even shorter time frame, e.g. 3 months or 6 months.
The other point to be kept in mind is that, since this is considered a
loan, any default, delay, etc. will reflect on your credit history, mak-
ing it harder to process loans in the future.
E.g. If you cannot repay the loan in time here is how much you
pay:
Key takeaway:
 Zero % interest is applicable only for the interest free period
 After completion of free interest period, it is treated as a loan, and any de-
faults will affect credit score
 Credit history will determine time frame and interest of the cash advance
 Interest is very high if you do not repay on time

How to find the right MF for you
Having more money each year is what everyone aspires for,
and one of the best ways to achieve this goal is through
investing in mutual funds. Mutual funds are one of the best
ways to invest one’s money, given the sheer number of
choices catering to every type of investor preference. The
fact that one need not monitor the investments on a minute
to minute basis (unlike if one’s investments were directly
made into securities), and the ability to diversify one’s port-
folio without high initial capital also are positive add-ons.
Many people are attracted to mutual funds, due to its higher
returns, but are concerned by the perceived risk factor. Mu-
tual funds are actually a relatively better way to grow your
money as compared to direct investments in Equities, with a
variety of options - both equity as well as more conservative
debt options. Investing in mutual funds is an excellent way
to achieve one’s financial goals as the investor benefits from
market rate of returns without having to spend too much
time understanding the intricacies of the market.
Mutual funds offer benefits such as:
 Hassle free avenue for investing - the investor is not required to
have pre-knowledge on the various asset classes
 Tax savings via ELSS funds
 Tax free returns on equity investments held over a year
 Opportunities to invest across different asset classes (debt, equi-
ty, commodity, etc.)
 Facility to invest in foreign markets
 Specialized funds to cater to varied requirements, such as index
funds, sectoral funds, arbitrage funds, fund of funds, and dis-
tressed asset funds
 Better liquidity than traditional investment avenues such as PPF,
fixed deposits, and bonds
Ascertaining one’s financial situation such as income, expenses,
investments and investment goals is the first step towards construct-
ing a portfolio. Apart from financial situations and goals, points to
consider are age, investment style, personality and risk tolerance.
Once the current situation is taken into account, we also need to fix
financial goals, and break this up into short, medium and long term.
Sep 11 2014 | Source: Yahoo.com

The next step is to understand one’s risk profile and based on the risk
profile, one can select the appropriate asset allocation (debt, equity, com-
modity, etc.). Are you a risk taker or risk averse person? If one loses
sleep over the ups and downs in the stock market, it will be better to avoid
any significant exposure to equity funds. However, if the investor is willing
to take risks and has the ability to hold on to the investment for a reasona-
ble period, equity funds are the best option to reach one’s financial goal.
The risk profile then decides the asset allocation, and one can divide the
capital between the various instruments. Here it is very important to un-
derstand the various instruments available in the market. There are the
following types/categories of mutual funds - Equities, Balanced, Gold and
Debt. Equities are one of the riskiest, while at the same time one of the
most rewarding investment. There is further categorization to an Equity
Fund based on capitalization – Large Cap/Mid Cap/Small Cap Fund.
Based on one’s Financial Goals and Risk Appetite, one can select the
suitable category of mutual fund for investments. Post deciding on the
allocation for each category of fund, one need to finalise on the funds.
Factors such as Past performance, portfolio size, how long the fund has
been operational, and expense ratio are some of the key points that have
to be studied while selecting/evaluating a fund. Fund houses with larger
portfolio size (AUM) and the long plus consistent track record should be
preferred over newer options, as these tend to be more stable in times of
turbulent markets. The expense ratio is an aspect that will impact the re-
turns, with different fund houses charging differing ratios, even a 0.5%
reduction in the expenses can result in a substantial increase in returns
over a longer period.
Once the investor has decided on the asset type, fund
house, and funds in particular, the next step is deciding
the investment mode - either lump sum or SIP
(Systematic Investment Plan). The SIP (Systematic
Investment Plan) is a better way to invest, as this elimi-
nates the need to time the markets. When investing via
the SIP route, the investor benefits from both falling
and rising markets since when the markets fall the
number of units purchased will be higher which will help
Key takeaway:
 Make financial goals & determine your risk profile
 Decide on asset allocation
 Select the mutual fund based on criteria such as fund
performance, expense ratio, asset size, etc.

The question of investing in mutual funds is a no brainer, espe-
cially for those of you who want to achieve your financial goals
(i.e. Everyone!). However, even after selecting the right fund for
you, assessing your risk appetite, and making the optimum asset
allocation, there remains the question of whether to go in for the
growth option or the dividend option. This confusion is further
compounded with the dividend re-investment option. The selec-
tion of the option is as important as the selection of the mutual
fund itself. Let us take a look at these options in more detail.
Growth Option
Investments made under the growth option will not yield any
short term income, in the sense that all money invested will
continue to be invested until redeemed - i.e. this will give you
capital appreciation and hence returns, but not regular (e.g.
Monthly) income. For example, if you purchased 1,000 units of a
mutual fund at Rs. 11 and sold it a year later at Rs. 15, this dif-
ference of Rs. 4,000 (i.e. Rs. 15 - 11 = Rs. 4 * 1,000 units = Rs.
4,000) is your capital gain and returns on investment. This type
of investment is more suited for long term investing in equity
mutual funds, as there are no taxes on long term capital gains.
Also, equity mutual funds are prone to short term risk, but in the
long term they typically give good returns. This option benefits
from the power of compounding since not only is the principal
invested, but also the notional profit. It is a good option for those
who do not need to depend on a monthly income from their in-
vestments for their living.
Also, since the fund does not pay out any dividends the NAV is
much higher than that of the dividend option for the same fund -
however it is to be noted that this difference is only due to the pay-
ment of dividends and not due to a substantial variation in the fund
performance.
Dividend Option
Unlike the growth option, investors opting for the dividend option
will get a payout in the form of dividend. This option is ideal for
short term investments, especially in debt. Debt mutual funds with
dividend options are a good option for senior citizens who require a
steady income flow and not only capital appreciation.
This option will give the investor the benefit of moderate capital
appreciation along with dividend returns over the period of holding.
It is important to note that due to the payouts, the power of com-
pounding is not as efficient as compared to that of the growth op-
tion. Also, investors who do not depend on the dividend income,
will face the risk of re-investment, i.e. re-investing the money
earned via dividend in an asset class which offers good return.
It is important to keep in mind that dividends are not guaranteed,
and also that sometimes no dividend is declared throughout the
year.
Mutual Funds: Growth or dividend option?

Dividend re-investment option
This option tries to make the best of both worlds, in the form of declaring
dividends to investors, but not issuing the dividends in the form of cash but
re-investing the dividends into the same mutual fund for additional units.
One faces the risk of having to pay an entry load each time a dividend is
reinvested, and also if there is any lock in (as in the case of an ELSS), the
new units will be subject to a further 3 year lock in. The growth option is a
better bet than the dividend reinvestment option.
Taxation
Taxation on growth funds is simple, as only capital gains are calculated, and
for equity funds there is no tax on long term capital gains, while for short
term capital gains it is 15%. In the case of debt funds in the growth option,
short term capital gains is taxed at 30% whereas Long term capital gains is
taxed at 10% without indexation or 20% with indexation. However, in the
case of dividend options, the dividend is tax free in the hands of the inves-
tor, but the fund will have to pay dividend distribution tax before it gives the
dividend.
Key takeaway:
• Growth option will not pay out any interim
dividends, and purely gives capital gains
• Growth is best for long term, and for equity
investments
• Dividend option will give irregular payouts,
and these are tax free in the hands of the
investor
• Dividend options are best for short term
debt funds
Apr-29th 2014 | Source : Money control.com

Most mutual fund investors are aware of systematic investment plans or
SIPs. These help people save a fixed sum at regular intervals and incul-
cate financial discipline without getting into the business of timing the
market. And most important, it gives the benefit of cost averaging due to
staggered purchase of units. This means you get more units when
markets are down and less when they are up, averaging out the cost
over the long term.
However, how staggered should the investments be? Most funds give
weekly, monthly and quarterly SIP options. Some also offer daily SIPs.
Now, we also have the option of a yearly SIP. In this option, launched
by Reliance mutual fund , a person will be able to invest once a year on
a given date. Does it make sense go for such a product? And, can an
investment done just once a year can be called a systematic invest-
ment?
Sandeep Sikka, CEO, Reliance Capital Asset Management, says the
product has been launched for people who want to invest for the long
term but cannot invest as frequently as a week or a month. "We have
provided investors an additional option and not withdrawn any option.
Investors can choose as per their cash flow requirement," he says. He
says a yearly SIP over 10-12 years will also provide the benefit of cost
averaging. What the investor chooses will depend upon his risk appetite
and cash flow. "We expect big investments under this option. It will
cater to the needs of people who get lump sums such as annual bonus-
es and want to put the money into equities for the long term but gener-
ally forget to do it"
," he adds. The minimum investment under the option is just Rs 500.
But certified financial planners have a different view. One objective of
SIP is accumulating wealth and earning returns. Investing once a year
may require a person to invest a lot of money at one go, which means
he may miss the benefit of cost averaging. This can have a negative
impact on the portfolio if the market falls. If an investor is willing to in-
vest a lump sum once a year, he must do it via systematic transfer
plans or STPs, " says Anil Rego, CEO, Right Horizons.
STPs usually involve transferring investment from one asset into anoth-
er over a period Vivek Karwa, a certified financial planner, says yearly
SIP does not make sense. "In monthly SIP, the person is aware that a
certain sum is going to be deducted from his bank account on a particu-
lar day and so he ensures that there is money in the account. In yearly
SIP, there is a high chance of missing the payment date," he says.
However, Manoj Nagpal, an independent financial adviser, has a differ-
ent opinion altogether.
He says mutual funds are taking a cue from the insurance industry
where yearly premium payments are the most popular, besides having
the lowest lapse rate. "Monthly SIP makes more sense than yearly SIP.
But the industry feels that monthly SIPs do not continue for long peri-
ods. Even when people enroll for a long tenure of, say, five years, they
generally stop after two-three years. The same lesson has been learnt
by the insurance industry, which also provides monthly, quarterly and
yearly payment options. Here too most policies that lapse are monthly
payment ones.
Getting the timing right

The number of policies that lapse is the minimum in case of the yearly
option. The fund house wants to see if it works in mutual funds too, but
what is beneficial for investors is the monthly SIP." If an investor has a
lump sum, he can take the weekly or daily SIP route to systematically
invest in equity funds.
Is it true that the more staggered the SIP is, the more returns you earn?
Theoretically, the answer is yes, as more regular investing helps you catch
market volatility better as you invest during highs as well as lows. This
results in better averaging. In case of SIPs with a big gap between invest-
ments, if the market is up on investment date, you will lose out. In contrast,
in daily SIP, there is no need to time the market as you invest on all days
the market is open. As far as returns are concerned, if you are investing
for a longer period of, say 10-15 years, the frequency will not result in any
substantial difference in returns, whether you choose daily, weekly, month-
ly or quarterly SIP. In our research '10-year Sensex Returns' we studied
daily, weekly, monthly and quarterly SIPs in the BSE Sensex for 10 years.
The difference in returns was just one to two percentage points. Daily SIP
has given slightly higher returns in all time periods, though the difference
is not substantial.
ALIGN SIP TO CASH FLOW— The frequency of SIP should depend on
your cash flow. Most salaried employees get their salary every month. It is
convenient for them to give an ECS mandate to their bank so that the
money is deducted from their accounts on a particular date of every
month. Generally, people prefer first week of the month. As the sum is
deducted at the start of the month, this enables them to plan their expens-
es accordingly
If they do it daily or weekly, they will have to make sure there is
enough money in the account throughout the month. "The purpose of
SIP is to average out the cost of investment. So, theoretically, daily
SIP serves the purpose best. But daily SIP is not recommended be-
cause of many factors.First, convenience is an issue. Banks may not
accept standing instructions for daily transfer from your account. Sec-
ond, there is the risk of missing the payment. Third, and most im-
portant, calculating capital gains tax will be cumbersome. Quarterly
SIPs in equity funds don't give the desired results as they fail to cap-
ture market movements. It is best to stick to monthly SIP for all practi-
cal purposes," says Rahul Shah, vice president, Equity Advisory
Group, Motilal Oswal Securities."A daily SIP will result in 20-30 entries
in your mutual fund and bank statements every month. It will be a
nightmare. We don't recommend that. The periodicity that we recom-
mend is monthly or weekly," says Srikanth Meenakshi, the founder-
director of Chennai-based Wealth India Financial Services.
RISK APPETITE—Apart from cash flow, the individual's risk appetite
will also determine the frequency of investment. The less frequent the
SIP, the more risk you are taking by timing the market. So, the fre-
quency of investment will depend upon your risk-taking capability.
Most experts recommend monthly SIP as it gives the benefit of rupee
cost averaging as well as the convenience of managing the cash flow.
Even if you have a lump sum, you can invest through systematic
transfer plans offered by mutual funds.

Yearly SIPs benefit most if you invest long term
7 Aug, 2014 | Source: India Group
Most mutual fund investors are aware of systematic investment plans or SIPs.
These help people save a fixed sum at regular
intervals and inculcate financial discipline without getting into the business of timing
the market. And most important, it
gives the benefit of cost averaging due to staggered purchase of units. This means
you get more units when markets are down and less when they are up, averaging
out the cost over the long term.
However, how staggered should the investments be? Most funds give weekly,
monthly and quarterly SIP options. Some also offer daily SIPs.
Now, we also have the option of a yearly SIP. In this option, launched by Reliance
mutual fund , a person will be able to Invest once a year on a given date.
Does it make sense go for such a product? And, can an investment done just once
a year can be called a systematic
investment?
Sandeep Sikka, CEO, Reliance Capital Asset Management, says the product has
been launched for people who want to invest for the long term but cannot invest as
frequently as a week or a month.
We have provided investors an additional option and not withdrawn any option.
Investors can choose as per their cash flow requirement," he says. He says a yearly
SIP over 10-12 years will also provide the benefit of cost averaging.
“What the Investor chooses will depend upon his risk appetite and cash flow.
"We expect big investments under this option. It will cater to the needs of people who
get lump sums such as annual bonuses and want to put the money into equities for the
long term but generally forget to do it," he adds. The minimum investment under the
option is just Rs 500.
But certified financial planners have a different view.
"One objective of SIP is accumulating wealth and earning returns. Investing once a year
may require a person to invest a lot
of money at one go, which means he may miss the benefit of cost averaging. This can
have a negative impact on the portfolio if the market falls. If an investor is willing to
invest a lump sum once a year, he must do it via systematic transfer plans or STPs,"
says Anil Rego, CEO, Right Horizons. STPs usually involve transferring investment from
one asset into over a period .
Vivek Karwa, a certified financial planner, says yearly SIP does not make sense. "In
monthly SIP, the person is aware that a certain sum is going to be deducted from his
bank account on a particular day and so he ensures that there is money in the account.
In yearly SIP, there is a high chance of missing the payment date," he says.
However, Manoj Nagpal, an independent financial adviser, has a different opinion alto-
gether. He says mutual funds are taking a cue from the insurance industry where yearly
premium payments are the most popular, besides having the lowest lapse rate.
Monthly SIP makes more sense than yearly SIP. But the industry feels that monthly
SIPs do not continue for long periods. Even when people enrol for a long tenure of, say,
five years, they generally stop after two-three years. The same lesson has been learnt
by the insurance industry, which also provides monthly, quarterly and yearly payment
options. Here too most policies that lapse are monthly payment ones. The number of
policies that lapse is the minimum in case of the yearly option. The fund house wants to
see if it works in mutual funds too, but what is beneficial for investors is the monthly
SIP."

If an investor has a lump sum, he can take the weekly or daily SIP route to systematically
invest in equity funds.
WHICH SIP GIVES BETTER RETURNS-DAILY, WEEKLY, MONTHLY OR QUARTER-
LY?
Is it true that the more staggered the SIP is, the more returns you earn? Theoretically, the
answer is yes, as more regular investing helps you catch market volatility better as you
invest during highs as well as lows. This results in better averaging. In case of SIPs with
a big gap between investments, if the market is up on investment date, you will lose out.
In contrast, in daily SIP, there is no need to time the market as you invest on all days the
market is open.
As far as returns are concerned, if you are investing for a longer period of, say 10-15
years, the frequency will not result in any substantial difference in returns, whether you
choose daily, weekly, monthly or quarterly SIP.
In our research '10-year Sensex Returns' we studied daily, weekly, monthly and quarterly
SIPs in the BSE Sensex for 10 years. The difference in returns was just one to two per-
centage points. Daily SIP has given slightly higher returns in all time periods, though the
difference is not substantial.
ALIGN SIP TO CASH FLOW
The frequency of SIP should depend on your cash flow. Most salaried employees get
their salary every month. It is convenient for them to give an ECS mandate to their bank
so that the money is deducted from their accounts on a particular date of every month.
Generally, people prefer first week of the month. As the sum is deducted at the start of
the month, this enables them to plan their expenses accordingly. If they do it daily or
weekly, they will have to make sure there is enough money in the account throughout the
month.
The purpose of SIP is to average out the cost of investment. So, theoretically, daily SIP
serves the purpose best. But daily SIP is not recommended because of many factors.
First, convenience is an issue. Banks may not accept standing instructions for daily trans-
fer from your account. Second, there is the risk of missing the payment. Third, and most
important, calculating capital gains tax will be cumbersome. Quarterly SIPs in equity
funds don't give the desired results as they fail to capture market movements. It is best to
stick to monthly SIP for all practical purposes," says Rahul Shah, vice president, Equity
Advisory Group, Motilal Oswal Securities
"A daily SIP will result in 20-30 entries in your mutual fund and
bank statements every month. It will be a nightmare. We don't
recommend that. The periodicity that we recommend is monthly
or weekly," says Srikanth Meenakshi, the founder-director of
Chennai-based Wealth India Financial Services.
RISK APPETITE
Apart from cash flow, the individual's risk appetite will also determine the frequen-
cy of investment. The less frequent the SIP, the more risk you are taking by timing
the market. So, the frequency of investment will depend upon your risk taking
capability.
Most experts recommend monthly SIP as it gives the benefit of rupee cost averag-
ing as well as the convenience of managing the cash flow. Even if you have a
lump sum, you can invest through systematic transfer plans offered by mutual
funds.

Shifting jobs; Tips for transferring provident fund
19-AUG-14| Source: IRIS
The employee provident fund (EPF) is a mandatory savings scheme by
the Government of India, wherein the employee (i.e. us) and the employer
contribute a monthly sum towards the PF organization, which offers a fixed
return per year on this investment. The money is secure and after retire-
ment, one can use this as a pension or take the money lump sum. It has
been created by the government and made mandatory, with the aim of
providing financial security when one retires by ensuring a minimum sav-
ings per month. This is done through the employee provident fund organi-
zation (EPFO). Some smaller companies may manage the PF themselves,
but are subject to scrutiny by the government and are allowed to invest
only in government debt instruments. The interest on the EPF is fixed on a
yearly basis by the government, and is currently 8.7%.
The money in the EPF is one of the safest debt instruments, with govern-
ment guarantee on the principal and the interest. One can add a nominee
to their EPF which makes it easier in the case of any unforeseen event.
There is also an option to get a pension through the EPF subject to certain
clauses such as having worked for a minimum of 10 years with the EPF
being transferred between employers and not withdrawn; and one has to
be a minimum of 58 years old.
When one shifts jobs, one has to change the EPF account from one em-
ployer to another, and this process can be cumbersome. The first step is
to fill out the Form 13 with the new employer who has to submit this to
their PF office, who will then in turn write to the old PF office requesting for
the transfer.
One can then check the status of the transfer request on the PF website.
You will need to know details such as the relevant PF office, establishment
code, and account information - all of which can be availed from your em-
ployer.
The EPFO has recently started an â€œe-passbookâ€ facility on their web-
site, giving EPF subscribers a real time account of their account balance.
This is necessary before the PF will be transferred, and you should regis-
ter for the same at the earliest.
If the transfer is stuck, you can visit the new and old PF offices to try and
meet the concerned officials (one might not always be allowed to talk to
the officials) to see what the issue is. One can also speak to their old em-
ployer to try to expedite the process. However, if there is an inordinate
delay in the transfer, you should document your grievance online with the
EPFO's online Grievance Management System. If there is still no re-
sponse, you can write a letter to the PF office.
(Contributed by Anil Rego, CEO & founder, Right Horizons )
Key Takeaway:
 EPF is a mandatory savings & retirement scheme setup by the gov-
ernment & monitored by the EPFO
 Companies with over 20 employees with basic salary up to Rs.
6,500 have to contribute to the EPF

LIFE INSURANCE
Feb 212014 | source : My
Digital

Jo Laye Apke Bachhi Ke Jindagi Mai Samriddhi …..

Beti Bachao Beti Padhao'
Key takeaways:
 Investment in Sukanya samriddhi Scheme is eligible for deduction u/s 80C
 Also a higher interest of 9.1%
Mar 4th, 2015 | Source: Financial chronicle

CUSTOMER TESTIMONIAL
Dr AL Rao, former COO-Wipro Technologies
Proactive gives market trends, Continuously gives advice. My
multinational bank does not give me this. They have good
knowledge in market, invested in tools and accurate MIS.
Srinivas Gandhi Senior Consultant – Oracle
I have been in the US for over 7 years and worked with
among the best of brands. I feel I am in safer hands with
Right Horizons. They make my money work for me.
Laxman Badiga, President-Wipro Technologies
Proactive. I felt I was investing wisely. After the engagement I
realised how I should be looking at my investments. They
have highlighted good opportunities. I have been in right
hands.
Garish S Paranjpe, Joint CEO-Wipro Limited
Right Horizons helped me in my financial planning. The team
has been responsive. Helpdesk at EC has helped. I talk to Anil
on a periodic basis on my investment strategies.

Partnering you in wealth creation –Our USP

Expert Advice on Media
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#201, Second Floor, Sufi Cham-
bers, Road #1, Banjara Hills,
Hyderabad - 500034.
Phone: 040 - 66415455 / 56 / 57
Right Horizons,
#6, Arakere Village, Bannerghatta
Rd, Opp. British Biological,
Bangalore – 560 076.
Phone: 080 - 41209582 / 98453
Right Horizons,
Old #166, New #14, First Floor,
Eldams Road, Teynampet,
Chennai - 600 018.
Contactus@righthorizons.com, www.righthorizons.com
Right Horizons,
#79, M.M. Road,
Frazer Town,
Bangalore - 560 005.
Phone: 080 - 41252179
Regular Invite in CNBC TV 18 and ET now for financial advice. Regular Invite in NDTV Profit for
“MF buy and sell” programme on Tuesdays. .

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