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Mutual funds

Invest in SIPs and take control of your Finances

Albert Einstein is supposed to have remarked: *Compounding is the 8th wonder of the world - one who understands it, earns it; one who doesn’t understand it, pays it!!* Compounding as a benefit of Mutual Fund is been a very talked about subject. But as a layman not many know how does it work. Compounding is simply an activity in which the earnings of the original investment also earn the same rate of return as an original investment. Now in the case of Mutual Funds let's say you invested in the fund when the NAV is Rs. 20. Now assume NAV goes up by 25%, in that case, the New NAV will be 25. Again markets go up by 20%. Now the new NAV will be Rs. 30 which is 20% above Rs 25. If there were no compounding than the return would be 20% over Rs 20 which was ...
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union budget insights

What’s in it for you in 2018?

Finance Minister Arun Jaitley presented the Union Budget 2018 yesterday, a month ahead of the usual date, in the backdrop of a strong stock market rally in 2017, high equity valuations, rising crude oil prices, dropping bond prices and an expanding current account deficit. As expected, the Budget has a populist stance, given the upcoming state and General elections in the next 9-12 months. The budget has doled out a series of measures for alleviating farmer distress and boosting the rural economy and ongoing support for broader Infrastructure development. While a lot of technical and financial jargon can be written on what all the Budget has, we would give out here only the salient aspects that concern you and your investments. Anybody interested in knowing more can refer to the 102 pages long Finance Bill 2018 (as the budget is called in official jargon) which is available at lots of ...
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Don’t lose Big time by not commuting the Additional Pension

Additional Commutation of Pension

Dear Friends, I had written a series of two articles some time back comparing Commutation of pension Vs Non-Commutation, and recommended that everybody should commute pension due to the reasons outlined there. Now, for the officers who have retired on or after 1st Jan 2016, the Govt has given an option to further commute the additional basic pension accruing due to the 7th CPC (Central Pay Commission) recommendations. In this article, I will deal with this dilemma whether the officers who have retired on or after 1st Jan 2016 should opt for further commuting their additional basic pension or not. Rather than writing a lot of words, I have taken the indicative data of four officers of the ranks of Lt Gen, Maj Gen, Brig and Col, all of whom have superannuated on 1st Aug 2016 at their respective ages of 60, 58, 56 and 54 years of age and ...
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Is this Diamond worth your money

Is this Diamond worth your money?

Life Insurance Corporation of India (LIC) is aggressively marketing its insurance policy, LIC Bima Diamond Plan, as a ‘Diamond for Life’. Let’s see if this ‘Diamond’ is worth your money? LIC Bima Diamond Plan is a typical non-linked, with-profit, limited premium payment money-back life insurance plan. Non-linked means it is not ULIP or your money will not be linked to equity market movements. With-profit means, it is like investment product where you get returns on your investment based on the product feature. Money back means at a different interval of the policy term, you will receive some money from this policy. Highlights of the policy It is a fixed tenure insurance policy. There are three tenure options - 16 years, 20 years and 24 years. The premium paying term is less than the tenure of the policy e. g. for a 16-year policy you have to pay only for 12 years.Money-Back (Survival Benefits)every 4th year. The premium rate ...
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How you can nurture a culture of wellness

How you can nurture a culture of wellness

The culture or the environment of an organisation has a significant impact on employees' productivity, and likewise, employees' productivity has a great impact on the growth of the organisation. Organisations these days are increasingly realizing that their actions in the workplace can positively affect the health and well-being of their employees, and so they are finding ways to improve and nurture the culture of the workplaces. Many organisations implement wellness programs but they may or may not create a true culture of well-being. But what will surely work is a positive outlook to bring about few simple yet impactful changes in the workplace. The workplace should be inspiring – Although remote working is on the rise, workplaces are still considered as the productive places to get work done. But unfortunately, many employees describe their workplaces as least inspiring. Organisations should always aim at creating well designed as well as inspiring ...
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How to find the right person for your organisation

How to find the right person for your organisation

Like most job responsibilities, hunting for the right kind of talent for your organisation can be overwhelming as well as baffling. To fill your cubicles with people who will contribute their best to the organisation is something you cannot predict beforehand. But all you can do is take rounds of interviews to test and re-test their potential. Now, there seems to be a lot of different strategies and opinions on what works best. However one point everybody will agree: If you get talent recruitment wrong, it can be very costly! So what’s the strategy for not going wrong? For managers to hire the right talents for their team today, they have to unlearn everything they know about hiring from past experience and reconstruct the objectives, approach and measurements to hire the right people for the team from scratch. Here are few key points to take note of when finding and ...
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Kitna Mileage deti hai- Financial Planning, humfauji.in

Kitna Mileage deti hai?

Sir, I’ve told him that he has a 80% Debt and 20% Equity portfolio where safety has been given more importance as this is his retirement corpus, but he insists that he won’t accept anything less than 15% annualized returns since the markets are now booming!” -I could make out my hapless young financial planner was at her wits end. “Sanjeev, what is this yaar? My overall portfolio returns are 25% CAGR (Compounded Annualized Growth Rate) but this one stupid fund is stuck at 17% and my planner is just doing nothing about it!”, ranted one of our aggressive customer. One of our bigger investor has moved almost 50% of his life’s savings to a well-known Portfolio Management Service (PMS) because his initial ‘test-drive’with their 100% equity portfolio produced great results in these rising markets. We routinely get calls from prospective clients who ‘haggle’ with us on ‘returns’ – if ...
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How To Build An Effective Expansion Team- http://humfauji.in

How To Build An Effective Expansion Team

Steve Jobs told us, “Great things in business are never done by one person, they are done by a team of people. Mark Zuckerberg insists that “When you look at the most big things that get done in the world, they’re not done by one person, so you’re going to need to build a team.” Bill Richardson rightly quoted that, “We cannot accomplish all that we need to do without working together.” Whether you’re running a start-up or looking to expand your business, building effective teams is essential to your success. A team to work as a unit requires some diligence and effort, but it makes the overall goal much easier to achieve. So, what does it actually take to build effective teams that will propel your start up or your project forward? In working with dozens of teams over the years for companies of a multitude of sizes, I’ve ...
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Strategies for Managing a Fast Growing Company-humfauji.in

Strategies for Managing a Fast Growing Company

Satya Nadella, CEO of Microsoft once said that, “Longevity in the business is about being able to reinvent yourself or invent the future.”If you've been part of a start-up that has experienced rapid growth, then you'll understand how important it is to constantly improvise and build systems that measure qualitative factors such as customer satisfaction, day-to-day market learning and incorporating innovation.Of course, that sounds much easier said than done but it needs a lot of time, energy and effort from the Core team to bring change, embrace growth and scale up. Also, you will find yourself juggling between organizational and managerial changes while keeping up with an increase in sales. Regardless of how beneficial or detrimental acceleration there has been, you have to sustain these challenging changes and you have to grow along. But, how do you do it? Here are some tips on how to manage a fast growing ...
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Where are your 6th Pay Commission Arrears

Where are your 6th Pay Commission arrears?

The bonanza 1st Jan 2006 was a magic year for Govt servants round the country. The 6th pay commission was operational from that day and had started working on the 10 Year ritual. It did take some time to give its final recommendations, but it was touted as one of the best pay commissions that Govt servants in India had seen. People got a good increase in pay and allowances, hefty arrears and there was rejoice all around. Even before it had come around physically to all, most of the defence officers had already planned its expenditure. Some had to buy a new car, some a great vacation (alas! there were no selfiesof the vacation spot to post on facebook at that time), some for white goods and some to pay off loans etc. Some even indulged in risky bets like direct stocks or commodity/derivatives play without an understanding. And ...
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