Author: Sanjeev Govila

20 Feb 2023

Will you miss out this Tremendous Safe investment Opportunity?

We had launched our limited-period Debt Opportunity Portfolio (DOP) 10 days back, accessible at the link below: (

The aim of DOP is to take maximum advantage of the current high rates of interest in the market which give us all a great opportunity to:-

  1. Lock in the current high rates of interest in high-quality and safe investments like Govt bonds, bank FD equivalents and corporate FDs.
  2. Be unaffected by the interest rate cuts which are likely to start approximately 6-10 months from now.

And and added Bonanza : there’s an even more powerful deal clincher called the ‘Mark-To-Market’ (MTM) advantage in DOP!  

This ‘deal clincher’ is peculiar to debt mutual funds and not available elsewhere due to the manner in which debt MFs work! Let’s see how…

What is this Mark-To-Market (MTM) phenomenon?

DOP will have various categories of bonds in the portfolio held through the ‘envelope’ of carefully-selected debt MFs.

Let us now say that the interest rates fall down from the current ballpark figure of 7% to 6% after about One year from now. The newly issued bonds available in the market at that time would therefore be offering a 6% interest rate (called the Coupon Rate in case of bonds).

The 7% interest bonds issued earlier (which would be part of our portfolio) and available in the market for sale-purchase, will then start commanding a premium due to giving 16.66% more rate of interest (7% Vs 6%) than the new bonds being issued giving 6% rate of interest then. The price of these earlier-issued bonds then increases in the market and our Debt MFs holding these bonds will see their NAV (Net Asset Value) rise, thus giving even more rate of return to the holders of those debt MFs while not compromising anywhere on the safety part at all.

Can we calculate the likely price of such bonds if the interest rates fall down from 7% to 6%?
For sure.

There’s an (obnoxious-looking 🙄 ) formula, called the Bond Pricing formula, that can calculate it:

Bond Price = [(Coupon Payment / Yield) x (1 – 1/(1 + Yield)^n)] + [Face Value / (1 + Yield)^n]

We’ll not bore you with the calculations but suffice it to say that a 10-year bond giving 7% interest today with a face value of Rs 1000 will be selling in the market at about Rs 1121.96 if interest rates fall down to 6%. This is equivalent to adding about 2% per year of more returns to the already high rates which can be currently locked in.

If interest rates fall down further, more bonanza.

Thus, DOP will not only lock in current rates, give you high safety, high-quality investments but also keep giving you better and better returns as interest rates fall down later due to the Mark-To-Market (MTM) phenomenon, compared to traditional safe avenues like bank FDs, Corporate FDs, Senior Citizens Savings Scheme (SCSS), Post Office Monthly Income Scheme (PO MIS) and the likes.

This is the B-I-G safe opportunity available in the market today

Check out the video Our CEO, Col Sanjeev Govila (retd), explains about the safe investment opportunity available in financial market here

So how do you go ahead?
Please feel free to reach out to your financial planner in the company if you are an existing investor, or contact us at or give us a call at 9999 838 923 during working hours if you are yet not invested through us.

Please note that the minimum investment in this opportunity will be Rs 5 Lakhs and further in multiples of Rs 1 Lakh.

08 Feb 2023

How Can you Take Best Advantage of Current High-Interest Rates?

We all know that interest rates right now are at all-time highs and it is just a matter of time before they start moving downwards. Knowing this, what generally is then our response for that part of our money which we want to keep safe for the long term?

We go and invest in long-term bank FDs in our favourite bank for 3-5 years. You too might have done that or may be planning to do that shortly. Is this really the best solution to take advantage of high interest rates in the long term?

Do you know, and hold your breath for it, you may be consigning your money to assured low returns for a long time which would be ‘net-NEGATIVE’ to you for the complete period of those 3-5 years?

This could surprise you but let us see how it so happens if you were to invest Rs 10 Lakhs in State Bank of India’s fixed deposit for a period of 3-5 years even at the current high rate of interest of 6.25% when the rate of inflation is at least 5.5%:-

Why Will It Happen Like That When it seems that Current High FD Rates Are Good for You?    

Rates are high but inflation too is high and is continuously eating into your returns without you even knowing it. How so?

As you know, inflation is the rate at which the cost of things that you buy increases year after year. Eg, if you earn 5.5% after-tax returns from your bank FD and the inflation is also 5.5%, then your money has just stood still for one year, earning nothing, adding nothing at all to your money value or its purchasing power. Only if you earn anything more than 5.5% after-tax in the year will your money’s purchasing power increase and you would feel that keeping that money in the bank FD was worth it.

If tax is causing all this loss to you, then why not invest in your spouse’s name who is not in a taxable bracket?

There is a income tax provision called the ‘Clubbing of Income’ (Income Tax Section 64) wherein you can give money to your wife (technically it is called ‘gifting’ to your spouse) but anything that this money earns forever is to be taxed in your own hands. Every year we see so many officers, who are not aware of this provision, invest a big amount, even a large part of their retirement corpus, in their wife’s name and then get Income Tax notices, finally ending up paying the tax anyway but with big penalties. Many years back this issue used to get brushed under the tax radar, but now, with close monitoring by the Income Tax Dept and sophisticated automation, infringements of Section 64 get detected very easily. And the tax notices follow…

Is there a way out where you take advantage of current high rates but also pay a minimal tax?

Absolutely yes, by investing in chosen safe debt mutual funds right now. And that is the big opportunity we bring to you now.

Let’s first compare the advantages of investing in debt mutual funds against fixed deposits for you.
Suppose you invest Rs 10 Lakhs each in SBI Fixed Deposits and good debt mutual funds for a period of 5 years.

As you can see above, investing in debt mutual funds reduced your tax liability by about 80%-!!
And thus provides an additional return of Rs 97,869 to you in your hands.

This exactly is the Opportunity that we wish to bring to your notice! 

To take advantage of this opportunity available right now, we are launching an appropriately named ‘Debt Opportunity Portfolio’ (DOP) for you which aims to buy very safe Debt Mutual Funds now, akin to bank FDs, when their prices are currently very low – so you get high-interest rates at low prices. This is a limited-time offer and will close soon.

Shift your bank FDs to this opportunistic portfolio and see yourself gaining interest and saving hugely on taxes continuously over the next 4-5 years.

For our existing investors, it will be a separate portfolio called the ‘DOP’ and will not be merged with the existing portfolio. This will facilitate closing the portfolio at an opportune time when we find that the best interest has been extracted from the portfolio. Typically, we feel right now that DOP will run for the next 4-5 years from now.

So how do you go ahead?
Please feel free to reach out to your financial planner in the company if you are an existing investor, or contact us at or give us a call at 9999 838 923 if you are yet not invested through us.

Please note that the minimum investment in this opportunity will be Rs 5 Lakhs and further in multiples of Rs 1 Lakh. Also, no shifting from current portfolio of existing investors can be done for taking advantage of this DOP opportunity.

19 Jan 2023

Get FREE Tickets for ‘11 Strangest Secrets of Wealth Creation’ Mega Event!!

A massive ‘Financial Wellbeing Conclave 2023’ is being organized in Mumbai after 3 years, from 19 – 21 Jan 2023, being attended by more than 1200 financial advisors across the country offline as also online. 

As a part of this Conclave, a MEGA Investor Awareness Program is being conducted online on the topic of 11 Strangest Secrets of Wealth Creation which will be delivered for the first time by 11 CEOs themselves of top Asset Management Companies of the country. Each Secret will be a very short-sweet-and-to-the-point 15 minutes’ delivery, making it a very intense bout of learning for you.

This online event is on January 21, 2023 (Saturday) from 10.15 AM to 1.30 PM and is expected to be attended by about 10,000 investors from across India.

Our CEO, Col Sanjeev Govila (retd), is the ‘Chair’ for this India Personal Finance Professional (IPFP) Summit and has been instrumental in helping curate this particular event. He will be there in Mumbai to kick-start it on the 21st Jan morning.

Hum Fauji Initiatives has been given a limited number of free tickets on a first-come-first-served basis which we expect to be lapped up very fast.

Register here for Free to get a free ticket for you and your family
or visit our CEO’s professional profile page directly for the event to book it:-

Please let us know when you have registered for the event so that we can ensure that at least our investors get their tickets in case the tickets get overbooked.

Similarly, In case you book a ticket, please ensure that you attend it or let us know in advance that you will not be attending it so that the ticket can be passed on to somebody else who could not get it.

order here