Vote For Large Caps In The Poll Year pg 60 Choosing The Right Financial Planner pg 32 SubScriber copy not for reSale March 2019, `50 o u tlo okmone y.c om Home Finance minister Indian women are making headway as smart investors Presented By Also : Investments Under `5000 pg 40 904150 800027 03 MAKE YOUR TEAM BETTER MAKE YOUR FIRM BETTER MAKE THE INVESTMENT WORLD BETTER HIRE A CFA CHARTERHOLDER ® By passing one of the most rigorous series of exams in the investment management industry, CFA charterholders have proven they have the skills and commitment to measure up to the needs of their clients and the demands of a changing world Charterholders also have the ethical foundation to put their clients first and make the right decisions for the long term, not just today When choosing the right person for your team, you want the best You want a CFA charterholder Get started at letsmeasureup.org © 2019 CFA Institute All rights reserved Contents March 2019 ■ VoluMe 18 ■ Issue pg Equity Stock Market Retirement 21 FemmeS and their Financial cruiSeS Real Estate Insurance Gold Mutual Funds How women are taking charge of their finances Regulars Talk Back 12 News Roll 16 Queries 92 Dear Editor Cover Design: praveen kumar.g Head Office AB-10, S.J Enclave, New Delhi 110 029; Tel: (011) 33505500, Fax: (011) 26191420 OtHer Offices Bangalore: (080) 43715021 Kolkata: (033) 46004506, Fax: (033) 46004506; Chennai: (044) 42615225, 42615224; Fax: (044) 42615095; Mumbai: (022) 33545000, Fax: (022) 33545100 Printed and published by Vinayak Aggarwal on behalf of Outlook Publishing (India) Pvt Ltd Editor: Arindam Mukherjee Printed at Kalajyothi Process Pvt Ltd., Plot No W-17 & W-18, MIDC, Taloja - 410208, Navi Mumbai and published from AB-10 Safdarjung Enclave, New Delhi 110029 For Subscription queries, please call: 011-33505562, 33505500 or email: yourhelpline@outlookmoney.com Published for the month of March 2019; Release on March 2019 Total no of pages 94 Outlook Money does not accept responsibility for any investment decision taken by readers on the basis of information provided herein The objective is to keep readers better informed and help them decide for themselves www.outlookmoney.com March 2019 Outlook Money Contents pg 32 Choosing the Right Financial Planner With the right planner, we can avert the worst money mistake 38 Filling the Void With a generation gap prevailing, the finance world awaits its next gen women leaders to fill in 40 When Small is Big The number of investments that you can make with only `5,000 in your kitty 46 ULIPs Becoming the New Rage Breaking away from the traditional methods, the newage ULIP is the talk of the town 50 Empowering Women The Right Way It is important to know and be capable of making investment decisions to be truly independent pg 36 Columns RM Vishakha, Dilshad Billimoria, Anju Chhajer, Deena Mehta and Cicilia Chettiar 54 Smart Money Decisions Women are picking pace in making better financial calls than their spouse 60 It’s Large Cap All The Way The best investment choices for the poll year 66 Perils That Come With Your Credit Cards Precautions we should take while using our credit and debit cards 68 Morning Star In Focus: Reliance Tax Saver Fund, Kotak Savings Fund and Franklin India Smaller Companies Fund 72 Stock Pick A brighter outlook for APL and Havells 74 Fintech Watch Finway makes lending easier with minimum turn-around time 80 My Plan Insurance Must-Have Essential insurance instruments for women Outlook Money March 2019 www.outlookmoney.com A direction to a diversified allocation of money 90 Book Review Indian Fiscal Federalism Guest Editor Celebrating Womanhood I Betting on large caps Building a new portfolio this poll year? Focus on large caps Shilpa Kumar MD and CEO, ICICI Securities t is a pleasure for me to be the guest editor for the women’s special issue of Outlook Money, which has so effectively focussed on personal finance I think there is an interesting contradiction that I see time and again in India On one hand, everyone will acknowledge the astuteness with which the women in their lives have handled money - the mother who made sure that family budgets were extended, the wife who wisely saved part of her monthly kitty and so on And yet, when it comes to managing savings “formally” through deposits, equity or mutual funds, we realise that this is largely done by the man of the house Often, this is put down that women are not aware of or able to understand the A,B,C of such finances And this fact is also supported by a lot of women, who often say that they can’t deal with these esoteric decisions This becomes particularly poignant when often a woman survives her partner and suddenly finds herself having to take charge of her family’s financial life of which she knows nothing The theme for this year’s International Women’s Day, observed every year on March 8, is “Think equal, build smart, innovate for change” I think we should take this opportunity to talk about how women can smartly take charge of their financial lives Two simple things can make this change happen First, women should be confident that they can easily take charge of their finances All of us, in the financial savings ecosystem, need to reach out to such women and handhold them as they bring their natural instincts of focus, discipline, savings and goal orientation into developing their understanding of Outlook Money March 2019 www.outlookmoney.com basic, but important, financial investment tools Why can’t the kitchen jar for monthly savings be replaced by a systematic investment plan or bank deposit, which will allow the money to grow rather than merely accumulate? How can we make this journey easy? How can we create more understanding about our finances? How can we more easily create access? Second, men should think of women as more equal partners in their financial lives as well To keep them updated about the financial health of the family and especially to ensure that legacies are passed on smoothly The future is looking bright from where I stand There are a number of women who are making their mark in various fields - be it finance, technology, medicine, politics and sports In personal finance itself, we are seeing a growing number of women financial advisors As the Indian woman takes charge of her financial saving, we could pretty much see a doubling of investors who can create wealth for themselves and their families With the same care, focus and discipline that is the hallmark of how they have managed family budgets for so many years To the women reading this, I am sure this issue will help you in many actionable financial aspects of your life like spending, saving, and investing wisely So go ahead, and make the most of it! Take that next step! And to the men, I would say, share this issue with the woman in your life And help her take that next step as well Talk Back A Pedigree For Readers I have been reading Outlook Money magazine for a while now This time as well the cover story read different from the previous issues It is always interesting to read about behind the scene stories of famous companies, as they provide one with much motivation To be honest, the topic was fresh and was written beautifully, managing to keep readers engaged throughout Awaiting the next issue! Shikha Mirchandani, Bengaluru Editor Arindam Mukherjee EquitiEs and MarkEts Editor Yagnesh Kansara assoCiatE Editor M Rajendran sEnior assistant Editors Aparajita Gupta Anagh Pal assistant Copy Editor Sanchari Ghosh sEnior sub Editor Sampurna Majumder sEnior CorrEspondEnt Himali Patel prinCipal CorrEspondEnt Nirmala Konjengbam sub Editor Smita Nag digital tEaM Amit Mishra Supriya Nigam art FORM IV (See rule 8) OUTLOOK MONEY Place of Publication New Delhi Periodicity of Publication Monthly Printer’s Name Vinayak Aggarwal Whether Citizen of India ? Yes (If foreigner, state the country of origin) Not Applicable Address AB-10, Safdarjung Enclave, New Delhi - 110 029 Publisher’s Name Vinayak Aggarwal Whether Citizen of India ? Yes (If foreigner, state the country of origin ) Not Applicable Address AB-10, Safdarjung Enclave, New Delhi - 110 029 Editor’s Name Arindam Mukherjee Whether Citizen of India ? Yes (If foreigner, state the country of origin ) Not Applicable Address AB-10, Safdarjung Enclave, New Delhi - 110 029 Name and addresses of Individuals who own the newspaper and the partners of shareholders holding more than one per cent of the total capital OWNER Outlook Publishing (India) Private Limited Windsor, 7th Floor, CST Road, Kalina Santacruz (East), Mumbai 400 098 SHAREHOLDERS Varahagiri Investments & Finance Pvt Ltd RAHEJAS, Corner of Main Avenue & V.P Road, Santacruz(West), Mumbai-400 054 Manali Investments & Finance Pvt Ltd RAHEJAS, Corner of Main Avenue & V.P Road, Santacruz(West), Mumbai-400 054 Matsyagandha Investments & Finance Pvt Ltd RAHEJAS, Corner of Main Avenue & V.P Road, Santacruz(West), Mumbai-400 054 Bloomingdale Investments & Finance Pvt Ltd RAHEJAS, Corner of Main Avenue & V.P Road, Santacruz(West), Mumbai-400 054 Coronet Investments Pvt Ltd RAHEJAS, Corner of Main Avenue & V.P Road, Santacruz(West), Mumbai-400 054 I, Vinayak Aggarwal, hereby declare that the particulars given are true to the best of my knowledge and belief Dated: 28 February 2019 sd/Vinayak Aggarwal PUBLISHER Praveen Kumar G, Vinay Dominic (Senior Designers) Rohit Kumar Rai (Designer) Girish Chand (DTP Operator) photography Gireesh GV (Picture Editor) Soumik Kar, R.A Chandroo (Photographers) tECh tEaM Raman Awasthi, Suraj Wadhwa Business Office ChiEf ExECutivE offiCEr Indranil Roy publishEr Vidya Menon assistant viCE prEsidEnt Tushar Kanti Ghosh national hEad Santosh Nair AssOciAte MANAGeR (iNteGRAted sOlutiONs) Vijay Kasbe circulation & subscriptions Raj Kumar Mitra, Anindya Banerjee Vinod Kumar (North), G Ramesh (South) Arun Kumar Jha (East) Shekhar Suvarna Production gEnEral ManagEr Shashank Dixit ChiEf ManagEr Shekhar Kumar Pandey ManagEr Sudha Sharma dEputy ManagEr Ganesh Sah assistant ManagEr Gaurav Shrivas Accounts assistant gEnEral ManagEr Letters must be addressed to: The Editor, Outlook Money, AB-10, Safdarjung Enclave, New Delhi 110029, or letters@outlookmoney.com Please mention your full name and residential address Outlook Money March 2019 www.outlookmoney.com Diwan Singh Bisht CoMpany sECrEtary & law offiCEr Ankit Mangal Talk Back and interesting read, which at the same time carried some useful information about the importance of investing money at the right time Thank you Outlook Money for sharing such great content M Mukherjee, Durgapur, WB Better Safe Than Sorry The piece on Mutual Funds really attracted me in this edition of Outlook Money I could relate to some of the mistakes that I have committed in the past regarding the same Thankfully the piece has highlighted the points that can guide a layman to the correct path of investing in mutual funds Thank you Outlook Money for such a lovely piece! Sanaa Ahmed, Patna The piece on Mutual funds was a rather pleasant read in the February issue of the Outlook Money It helped me to chalk out my investment plans in the mutual fund segment, carefully avoiding the hindrances mentioned Looking forward to more such articles! I have been reading Outlook Money for quite a while now, and since the last two editions the Dear Editor page has come across like a breath of fresh air It is quite a relief to read this page, as it is a light read and gives a well-deserved break from the heavier contents Puneet Dahiya, Delhi Your thought-provoking and eyecatching story “Sheen Intact: Gold still a Good investment Bet” (Feb’19) gives a loud and clear message to the Indians that in bad times, it is gold, hoarded and accumulated bit by bit over decades, which is the saviour Investors all over the world tend to consider gold a safe option and put their money in it Every year, one-fifth of world’s gold is consumed in India Today, most Indian women not have much of a say in the investment the husband makes in stocks and shares, bank deposits or real estate Apps Save From Investment Distress The Tech page in the February issue of Outlook Money magazine was the most appealing It is one page that comes up with a variety of topics, each equally interesting than the previous This time the page spoke of the apps that can help us to manage our finances better To be honest given the work load, such apps are literally a life saver! Nimrat Kaul, Chandigarh Early Investment Awareness I have been reading Outlook Money for nearly two years now and I must say that of late there has been a drastic change in the magazine content I feel that the stories have become more informative and analytical In the last issue of the magazine I thoroughly enjoyed reading the new column titled Dear Editor The column featuring Adhil Shetty made for a light-hearted 10 Gold To The Rescue! Outlook Money March 2019 www.outlookmoney.com Piyush Gaur, Indore Gold grants social and financial security to women It is said that next to the husband, a woman always loves her jewellery the most, and, in some cases, it is dearer to her than her husband Our traditions too have laid emphasis on gold as a symbol of prosperity Experience shows that if one wishes to invest in gold, it is always better to buy gold or biscuits rather than jewellery Vinod C Dixit, Ahmedabad Gold still a good investment bet I bet is a surprise to me and many more But the author has drummed up quiet supporting arguments that one would have to believe that it is true However, Gold in India is available more as ornament and that does not help when one has to cash it Further the quality of Gold is critical and it differs across the country, so is the value The author has missed this point S.Badrinaraynan, Delhi My Plan Breaking Away From Traditional Investments Moving towards a diversified investment plan to reach desired goals A kheel Jain, 36, started his career with Adlabs Films Limited a couple of years back and is currently working at Samsung Electronics India Private Limited as an Area Manager in Sales, Guwahati, Assam Brought up in a joint family, he is well aware of the fact that savings is followed and maintained as the traditional method of building wealth He had always known that such orthodox method of savings will not be able to fulfill his desired goals With investments in fixed deposits and LICs, Jain acquired the understanding of the benefits of systematic investments from his cousin who used to work in a financial advisory firm in Bengaluru “Savings should be started from a very early age,” despite believing in this policy, he regretted wasting the crucial time when it was supposed to be started Jain shared his wish of educating his nine-year-old son, Mahit, in a well-known university and also taking retirement at the age of 60 While gathering information about his existing investments and wealth, he shared that he only owns a few fixed deposits and LICs availed by his father He currently resides with his parents and siblings as a joint family in his own house Jain wanted us to show him the roadmap towards achieving his desired goal being – Mahit’s education and marriage along with the creation of his retirement corpus He has mentioned that his annual income ranges between `25-30 lakh and can religiously follow the plan advised in building the corpus as wished for Disclaimer Financial Planning of Akheel Jain is based on the “personal opinion and experience” of Pallav Bagaria and that it should not be considered professional financial investment advice No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence 80 Outlook Money March 2019 www.outlookmoney.com Particulars Child Education Child Marriage Retirement (based on (` In Lakh) (` In Lakh) monthly expense) (` In Lakh) Current Cost of Investment 30 50 50,000 Future Cost 57.7 185 Monthly Savings Required 0.18 0.10 0.12 14% Expected rate of Return NOTE: The amount for the respective goals is an assumed cost, and not based on the information provided by Jain The direction to creating happiness Emergency Fund building Being a salaried individual Jain’s work is uncertain He may contemplate to start a new work, which might pose a huge risk to his family’s financial stability Hence, the first recommendation to Jain was to create an emergency corpus, equal to times his monthly expenses in order to safeguard the interest of the family at the time of crises This emergency corpus should be invested in liquid funds, providing the flexibility to withdraw the money at any point of time with a return of six to seven per cent per annum Protection of family financial stability – Term Insurance While discussing about his financial goals, we noticed a fact that Jain being the breadwinner of his family had no plan towards ensuring their financial stability, in case of any unprecedented situation We recommended him to have a term insurance plan, covered till his life expectancy age of 80 where premium paying term should be 60 (that is before his retirement all the liabilities should be completed), with sum insured eligible according to his annual income and age respectively As for example, with the annual income of `25-30 lakh, he was eligible for `5 crore sum insured, the premium being not more than `1 lakh per annum Savings should be started from a very early age Non-existence of Medical Insurance Jain mentioned that being an employee, his Mediclaim is already insured by the firm In India, the medical expenses have increased massively over a decade Moreover, a Mediclaim policy apart from that provided by the company is important because it would be required even after retirement from work Hence, we advised to have a medical coverage as a top up to existing insurance provided by the company An additional medical cover of `5 lakh would be sufficient for the family ,which would not cost more than `15,000 per annum Goal Planning According to Jain’s desire- Mahit’s Education,marriage and his own retirement planning, we provided him with the roadmap keeping in mind the inflation rate which increases the cost of the desired goal at the time of completion Current Scenario Jain initially started with `5,000 in SIP in multi cap funds towards his first priority goal for Mahit’s education With time he could see the performance of the funds invested in, and gradually started increasing his amount of savings as SIP and lump sum Currently, he runs SIPs of nearly `20-30,000 which nearly completes all of his goals He has also built his emergency corpus wherein the funds are invested in liquid funds Jain’s portfolio as on today holds mixture of both debt and equity wherein the allocation is - 68 per cent in equity, 15 per cent in hybrid and 17 per cent in debt funds As and when, he reaches to the age of the desired goal; the corpus accumulated can be switched to liquid funds for effective and easy use pertaining to a return of 6-7 per cent per annum Also, the retirement corpus can remain invested in debt funds with systematic withdrawal plan in order to provide him with the monthly expenses as planned to maintain his lifestyle Jain is advised to religiously follow the roadmap Being happy and satisfied with the plan, he advises his colleagues and friends that, “Financial goal planning is very important for an individual One should start planning in building their portfolio Regular review of the plan is necessary Also, every year increase your SIP as your income increases.” Pallav Bagaria Director, Sapient Wealth Advisor And Brokers www.outlookmoney.com March 2019 Outlook Money 81 Presenting sponsor Associate sponsors Supported by 4b 4a 4c 6a 6b 7a 7b 8a 8b Presenting sponsor Associate sponsors Supported by Financial Management By Yagnesh Kansara A Mumbai-based Marwari couple filed for divorce after being married for 25 years When their lawyer cross examined the man about their bank account details, she was shocked to learn that there was neither a joint account, nor he had made any investments in his wife’s name The case was handled by Mumbai’s famous family court lawyer Kranti Sathe, who also fought other high-profile divorce cases including Bollywood celebrity couples Karisma Kapoor and Sanjay Kapur and Malaika Arora and Arbaaz Khan This is no aberration Many women across the country end up in such state of financial mess when they decide to walk out of a marriage Some cases get resolved but several of them remain under litigation for years “In a small city like Navsari (South Gujarat), we get at least three to four such cases per week And the irony is, they are rising in numbers,” said Paresh Joshi, Practicing Advocate, Surat, Navsari and Valsad District Courts, South Gujarat Married women (even if they are working) suffer the most, when it comes to managing their personal finance According to lawyers and tax experts, women should be held accountable for putting themselves in such a dire state Aarti Sathe, a practicing tax lawyer, said, “This is a more of a mindset issue Most of the women I come across are of the opinion that this area (investing, financial planning, managing financial resources) is the one which they should not get into They feel, their partners understand it better and hence, they not question them.” It is like most men claiming that kitchen is not their forte so they don’t cook, which is again a mindset issue, she claimed All the women, she spoke to, are educated and come from well- 86 Harnessing A Money Mindset Most divorced women land up in financial mess due to lack of awareness off family backgrounds; some are professionals while others are homemakers However, they all have given their partners the authority to manage their funds and assets Anita Mehta (name changed on her request), a media professional, who recently got separated, said, “During the marriage, the mistake was not to create a joint account for common expenses and goals in proportion to our salary So when we separated, there was no way to figure out how and where my money went.” Experts are of the opinion that though women have requisite provisions to protect themselves legally, to avail that they should get familiarised with the basics of legal parlance on how to manage their finances “Women ignore their Most women feel their partners understand finance better Outlook Money March 2019 www.outlookmoney.com financial priorities over emotional and social considerations It has changed over the years but the problem still exists in plenty,” said Aarti Sathe She added, some of them also said that only single women need to be financially aware “This is incorrect You it because you don’t want to be dependent.” Giving her own example, she stated, she started investing very early in life “Since the age of 28 or 29, I have been financially independent, having considerable investments across all the asset classes, be it fixed deposits, equities, mutual funds, real estate and jewellery,” she said Kranti Sathe, warns against investing too much in gold She advocates investment in the gold but in a limited manner According to her, money invested to buy gold is a dead investment and hardly gives you any return In addition, there are other issues like purity of the metal, making charges and others, which act as obstacles in the return on asset She advises to invest in those assets that have paper trail, where the woman has contributed or her participation can be documented like fixed deposits, bonds, shares, mutual funds Parents also should take care that instead of spending heavily on marriage, a part of that money should be parked in long-term investments, which can be useful for the couple in their family life Advocate Joshi also pointed out that the responsibility of woman’s parent is not only to give her basic upbringing but also to provide information and knowledge about their personal finance management at a very young age to make her financially independent Once the woman gets married, she is never bothered about creating a separate or independent asset for herself, which should not be the case, said Kranti Sathe “I think it is because of the fact that if a newly married woman starts thinking of carrying out an independent financial activity, owning assets in her name, plans her own investment, she feels it will raise some needle of suspicion in her husband’s mind, which might again affect their married life.” Hence, she never raises money matter during the first few meetings before their marriage, she stated On the contrary, financial matters are serious issues and women should be clear about their perspective from the very beginning Men should also encourage their wives to participate in financial activities Aarti Sathe added another dimension to it She said, “Homemakers are not remunerated or their job is not assigned to any monetary value, though it is invaluable.” Also, they are mostly unaware of the efforts that go into collecting a corpus and how one (their male counterpart) earns that They (women) are not concerned whether the invested money is growing and are often happy with the certain amount of pocket-money they receive from their husband every month, she explained “This is a very serious issue,” warned Aarti Sathe, “Why women should not be aware of her partners’ source of income, particularly Kranti Sathe Family court lawyer In a marraige, women should be clear about their financial perspective What constitutes StreeDhan? S treedhan is the asset owned by women that she may have received from her ancestors, the things (including jewellery) given to her by her husband, in-laws, relatives, which includes parents and others (in marriage or outside the marriage) These are her exclusive property Earlier, during agrarian economy and when agriculture was the primary source of income, farmers would often ask their wives to lend their jewellery in case of a loss during a bad farming season or drought This was considered as a loan extended to him by his wife The farmer would be obligated to return the jewellery to his wife There is a detailed provision under the Hindu Marriage Act when a business is carried out in her name, or she is one of the partners.” They should be aware of their and their partners’ liabilities If a woman becomes a co-guarantor for a loan along with her husband, it is important to know about the underlying securities Kranti Sathe said, “I am handling a case recently, where a real estate business is handled by the husband and the wife didn’t know anything about it, though the business is carried out in her name Now, when the couple has decided to file for a divorce, the woman came to know that entire liability is on her Fortunately, the husband is ready to take over the business liabilities.” However, while they were filing the application, the woman came to know about her husband’s extra-marital affair and refused to go ahead with the divorce Now, her husband is blackmailing her with the liabilities Today, legal provision has become very stringent, the corporate governance and company laws have been tightened so much that even for a minor technical violation, you might have to go behind bars, for no fault of yours, cautioned Aarti Sathe So what is the remedy for all this? Women should be self motivated as far as money and finances are concerned They should take active part in discussions with their spouse and that too in front of their children They should be aware of their rights with respect to where their names are being used As far as financial literacy is concerned, it is already very low across the nation To overcome this, we need to introduce the subjects related to savings and investment in the school curriculum This will help us in creating and developing a more awakened and knowledgeable next generation Women in particular should keep in mind three things while seeking financial independence, and these are knowledge, attitude and behaviour, concluded Kranti Sathe yagnesh@outlookindia.com www.outlookmoney.com March 2019 Outlook Money 87 Standpoint Unleashing The Laxmi Within Deena asiT MehTa Every women should educate themselves financially I ndian women actively participating in finance is still a rare phenomenon; in fact the same trend can be seen worldwide as well While they may be good at handling household expenses, when it comes to taking major decisions pertaining to financial investments, they somehow take a back seat It has been observed that women themsleves are often reluctant when it comes to managing financial assets of the family This trend I feel must now change Interestingly, in Indian mythology we worship Laxmi and Saraswati, both of whom are women The former is the goddess of wealth and the latter, goddess of wisdom Therefore, I feel the learnings of wealth management are in the DNA of every woman However, sadly since our society has evolved in a male-centric manner, wealth management is also seen as a male dominion Wealth is created in name of the son and not the daughter Marriage expenses and jewellery are provided for the daughter Thereafter it is the daughter’s husband who dutifully maintains the wife and it is often not expected that she will also need some financial freedom Similarly, in stock broking business there are very few women, since a large capital is required to set up the business and financial assets are not created in name of the girl child However, involving women in family finances is important as it often turns out to be productive Men may be good at earning money, nonetheless it does not translate to them being good many managers Every class of financial asset requires continuous maintenance for it to stay productive and contribute to the family budget Women on the other hand have more patience that helps them manage finances in a more calculative and better fashion I will briefly explain how alertness increases returns on investments Involving women in family finances is important 88 Outlook Money March 2019 www.outlookmoney.com Since women are safekeepers and often better at remembering, keeping custody and track of financial investments is often their strong point This very skill is something that women need to encash and make the most of it And this kind of activities are possible only with little care and knowledge Financial planning is very important to protect the future for every family Taking care of unforeseen circumstances like prolonged illness, permanent impairment needs planning Many families are wiped out due to these events We often see in movies where the woman of the house sells her jewellery in times of family emergencies Such situations can be avoided if some funds are not only set aside but also invested wisely Children today have lot of aspirations and peer pressure makes them spend a lot more than what a middle-class family can afford Making children understand about family finances is important On the other hand, women can supplement the family income by understanding the management of financial assets It is a silent contributor; if common sense management tactics are used to get continuous returns from financial assets it will eventually be helpful in the long run One needs to learn to earn Learning about investments is very easy in this era of the World Wide Web Thousands of sources are available, right from newspapers to magazines to finance websites and even videos exclusively dedicated to personal finance Taking that first step towards educating oneself is important Once you take that first step, you will realise how exciting the world of investments is I have been hooked on to the markets for over 35 years and no day has been dull or boring.There is something always happening, new learnings come your way all the time Every woman can light the lamp of knowledge and Laxmi, the godess of wealth will be at your doorstep The author is the MD of Asit C Mehta Investment Interrmediates 6804 Manesar (Tower-F) 500% 400% FAR 101 12 50 15 EMD Indicative Price ( in Crore)* ( in Lakh) IDC NES AL AR TOW & P ER ANI S A PAT T 20 19 crit Visit eria ww , p w.h oth artici siidc er t pat org erm ion in s & , pa for e yme ligi diti nt p bilit ons roc y of a edur uct e an ion d th AUC MEGA TIO 18 N FEB HSI HSIIDC Regd Office: C 13 & 14, Sector-6, Panchkula, CIN: U29199HR1967SGC034545, Website: www.hsiidc.org.in, e-mail: Info@hsiidc.org.in HARYANA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED All details including any Proposal Due Date extensions, clarifications amendments, addenda, corrigenda, etc., will be uploaded only on the website of HSIIDC and will not be published in Newspapers Hence, Applicants may regularly visit the website of HSIIDC to keep themselves updated about such developments *Bids below the Indicative Price are also permissible 1728 Area in sqm Panipat (Export Complex) Estate Pre-bid Meeting 05.02.2019 COM M MA ERCI Book Review Unfolding India’s Fiscal Federation Reddy’s work provides a deep insight into India’s economic endeavours By Sanchari Ghosh F ormer RBI Governor and noted Indian economist Y.V Reddy has never been very media friendly So, whenever he comes in front of the public it can be assumed that he has something substantial to say Knowing his reputation, when we picked up his newly released book Indian Fiscal Federation (coauthored with G.R Reddy – Advisor (Finance) Telangana Government) for review, we are not looking at something which can be passed on as a light airport read Released months before the upcoming election, thankfully, the book is not a political commentary Rather, this well-researched document is a contemporary, timely and comprehensive analysis of fiscal federalism in India Before delving deep into the subject, the first few chapters (precisely first four chapters) throw light on the origin of fiscal federalism and how finance commission was formed The authors pointed out, fiscal federalism, which can be viewed as a game in politics, economics and public finance between the centre and the states, was highly influenced and in fact structured to provide favourable trading benefits to the British crown It Government reshaped policies to innovate functioning 90 Author y.v reddy & g.r reddy Publisher oxford Price ` 695 was after the independence, the policies were slowly reshaped over decades by successive governments to bring significance difference in its functioning Not very heavily jargoned, the chapters flow fluidly If you are a history buff, you might pick up some interesting facts especially about the formation of the Indian constituency As the book proceeds, the authors get more technical in the next few chapters explaining vertical and horizontal fiscal distributions, grants and aids and basic structure, features, successes and failures of the planning commission This part of the book is heavy on fact, hence needs mindful reading The basic Outlook Money March 2019 www.outlookmoney.com concept of economics and taxation might also come handy The chapter the stands out is the understanding and explanation of the Goods and Services Tax From inefficiencies of the previous tax regimes to what was the need for a much evolved taxation system to its fallacies, the authors eloquently explains the importance of goods and services tax Appreciating its potential, they point out, “GST Council is a shining example of cooperative fiscal federalism at its best For the first time, despite having differences, the Union and the States have voluntarily come together to share a common base… While the arrangement is yet to stand the test of time, the functioning so far gives rise to hope that it will be pillar of strength on the indirect revenue side…” Flipping few more pages, reader comes to the Niti Aayog chapter Similar to the GST one, the authors go at a great length to explain it structure, formation and functioning Niti Aayog, the authors explained, is a new incarnation that warrants an initial assessment It is intended to address the weakness in the functioning of the planning commission “However, it has not been able to come forward with anything positive,” they pointed out quite bluntly Even if you decide to skip through one or two too technical parts, don’t miss out on these two A word of caution – this book is not meant for those who are keen on economics and finance If randomly picked, it would be put down within minutes and not even hours sanchari@outlookindia.com HSIIDC HSIIDC your partner in progress LAST DATE FOR RECEIPT OF APPLICATIONS February 25, 2019 ONLINE APPLICATIONS ARE INVITED FOR ALLOTMENT OF INDUSTRIAL PLOTS IN HARYANA MORE THAN 50 INDUSTRIAL PLOTS ON OFFER • Geo reference mode • Relaxed provisions • Transparent procedure for allotment of plots • No enhancement • Ease of doing business by self certification • Supporting service sector Haryana State Industrial & Infrastructure Development Corporation Limited (HSIIDC) invites online applications for allotment of industrial plots in Haryana The details of the plots and tentative rates of allotment are as under:Allotment Rate Plot Size No of Plots (Tentative) Estate (in Rs psm) (Tentative) (Tentative) sqm General NRI/FDI PWD Total (Subject to change) 12,000 0 1 9355.5 IE Barhi IE Panipat 8,800 7875 18 22 0 2 39600 Textile Park 0 1 57105 8,800 Panipat 0 1 66420 0 1 78165 0 10000 0 2 12150 IMT 15,500 0 2 15000 Faridabad 0 21500 0 1 50000 UV Gurugram 32,000 7200 Sector 34-35 IMT Manesar (Technology Park) IMT Bawal 19015 0 26780* 11700 13272 18009 20250 24300 28350 39900 83592 Total 1 2 1 53 0 0 0 0 0 0 0 0 1 2 1 58 11,394 ! * i.e Rate of Technology Park which is 15% higher than the industrial rate for self user category and 30% higher for developer category (Kindly mention your option in the introduction of the Project Report) ! Applications may be filed online through single window portal of Haryana Government at www.investharyana.in ! For detailed terms & conditions and procedure for filing applications, visit e-governance portal of HSIIDC www.hsiidcesewa.org.in ! Complete details of the offered plots indicating plot numbers, tentative size and plots earmarked for NRI, PWD are available on www.hsiidcesewa.org.in ! The number of plots offered for allotment are tentative and the Corporation reserves the right to withdraw any plot(s) from allotment at any stage, without assigning any reason ! The Service Sector Enterprises may apply for permissible service sector activities as per clause 3.8 of EMP-2015 under general category ! The allotment rates are tentative and final allotment rate will be the one applicable at the time of issuance of Regular Letter of Allotment (RLA) ! In case the response under NRI Category is less than the plots offered for allotment, the residual plots after accommodating the applications under NRI category, may be considered for allotment under General category, if applications received under General category are more than the offered plots Haryana State Industrial & Infrastructure Development Corporation Limited Regd Office: C-13 & 14, Sector-6, Panchkula, Ph 0172-2590481-83, Fax: 2590474 Website: hsiidc.org.in, E-mail: info@hsiidc.org.in CIN: U29199HR1967SGC034545 Dear Editor, So, I am a woman who has successfully made her mark in the male-dominated world of finance The journey has been exciting so far Recently, I completed 19 years with Kotak On the occasion of my work anniversary, many came to congratulate me My inbox was flooded with ‘Badhai Ho’ messages as ‘the Stree’ completed 19 years with the brand A brand that has been competely ‘Swadesi’ Needless to say, along the journey, I have witnessed many ‘Hulchul’ as well as ‘Hichki’ moments while being part of the financial markets My first stint with investments in fact started with Kotak I remember, way back in 2000, a colleague who used to oversee equity investments, insisted that I buy only 100 shares of Kotak Mahindra Finance (now Kotak Mahindra Bank) Despite having my share of doubts and with great reluctance, I acceded to his suggestion and made my first ever investment Since then, the journey has been a never-ending one However, lets not rejoice looking at the current market prices (As I sold off the shares for a measly gain! ) While, I continue in my ‘karwan’ of financial investments, I must say that the first ever stint taught me the most important lesson about markets – the power of compounding As Albert Eistein once said, “Compound interest is the eighth wonder of the world He who understands it, earns it he who doesn’t pays it.” From then on, I took a different route, that of Systematic Investment Plans (SIP) Regarding SIPs, my thought process was simple, if I earn on a recurring basis, why should I not invest too on a recurring basis Trust me, since then there has been no looking back Investing via SIPs at times feels like a Chinese bamboo tree – you keep nurturing it, yet it may not show results near term But the compounding impact that it can have on your portfolio is definitely worth the wait Financial investments must be treated like wine, longer their time span, the vintage they become – chances of better outcome only increases I learnt that it’s good to be somewhat oldfashioned in terms of financial investments Sometimes its best to abide by the statement – ‘Fill it, shut it and forget it’ This is easier said than done, as the forces of ‘greed’ and ‘fear’ often tend to play in a mischievous manner with our hard-earned money Sometimes some free advice in terms of financial investments can actually turn out to be great I remember, once a senior industry person gave me a piece of advice, (right before general elections in May 2004) – Sell in May and Go Away! And avoid looking back every now and then! It is unnecessary to react to every event that is happening around you It is more important to stay on the course Time plays a crucial role in investments; This is one major lesson that I have learnt in my journey of financial escapades Yet another understanding that I have gathered over time is about the importance of gold in financial investments Indian women (including me initially) always perceived gold as an asset class However, once I started my journey of investments, I learnt that the yellow metal should be included as a term insurance in one’s portfolio Let it rather be the last man standing even when the world is all set to collapse I have seen many investors making the cardinal mistake of making gold a pre-dominant portion of their investment portfolio But, how I wish I could share with them my core learning – all that glitters is not gold! I have always treated equities like red bull drink (energy boosters), which showcases substantial growth potential and have realised debt is like ‘nimbu paani’ (refreshing drink) which is more stable in nature Its very important to strike an optimal balance between the two However, on a final note I will have to acknowledge and express gratitude to my personal financial advisor Just like Arjuna needed Krishna as his ‘sarathi’ even we need ‘sarathis’ in our financial journey Lakshmi Iyer Chief Investment Officer, Kotak Mahindra Asset Management RNI NO DELENG/2002/08292 25 YEARS OF HELPING YOU REACH FOR BETTER N IN KL TEMP LE FR N F E RS AL TH YEA O CRE Franklin India Bluechip Fund Franklin India Prima Fund Investments In Predominantly Large-Cap Companies Investments In Predominantly Mid-Cap Companies Alternative to: Suitable for: Retirement Corpus Follow us at : Education Corpus T O A FRANKLIN INDIA BLUECHIP FUND FRANKLIN INDIA PRIMA FUND Long Term Wealth Creation AT ING W PRODUCT LABEL These funds are suitable for investors who are seeking*: • Long term capital appreciation • A fund that invests in large cap stocks Franklin India Bluechip Fund • A fund that primarily invests in mid-cap stocks Franklin India Prima Fund *Investors should consult their financial distributors if in doubt about whether these products are suitable for them ... The Editor, Outlook Money, AB-10, Safdarjung Enclave, New Delhi 110029, or letters@outlookmoney.com Please mention your full name and residential address Outlook Money March 2019 www.outlookmoney.com... themselves www.outlookmoney.com March 2019 Outlook Money Contents pg 32 Choosing the Right Financial Planner With the right planner, we can avert the worst money mistake 38 Filling the Void With a generation... 33505500 or email: yourhelpline@outlookmoney.com Published for the month of March 2019; Release on March 2019 Total no of pages 94 Outlook Money does not accept responsibility for any investment decision