Author: Team Humfauji

07 Apr 2020
Stock Advisory Services

Stock Advisory Services

Bowing to the persistent demand from faujis to start Stock Advisory services for them, We, at Hum Fauji Initiatives, have decided to foray into this. We have entered into it now since these are fabulous times to get into stocks right now – most of us do not realise that we have a massive investment life-time opportunity in front of us, though current risk and volatility may stay in the markets for longer than we anticipate.

The true investor welcomes volatility…a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses. ~ WARREN BUFFET

He who is not courageous enough to take risks, will accomplish nothing in life. ~ MUHAMMAD ALI.

What is the Offer?

We have tied up with Mr Sandip Sabharwal, who is one of the best-known names in Indian Stock Advisory services. He is a B Tech in Chemical Engineering from the Indian Institute of Technology Delhi and did his PGDM from IIM Bangalore. He started his career with SBI Funds Management Pvt Ltd and worked for SBI Mutual Fund for the first 11 years of his career. During his tenure as Head of Equity from 2003 to 2005, the equity assets of SBI Mutual Fund grew from Rs 300 Cr to around Rs 6000 Cr. Most Equity Funds of SBIMF were top ranked in their respective categories from 2004 to 2006. He worked in JM Financial Asset Management Company Pvt Ltd and was Chief Investment Officer for Equity Funds from late 2006 till March 2009. Equity Assets of JM grew from Rs 200 Crores to Rs 5000 Crores from December 2006 to February 2008. Most key funds were top performing in the year 2007. Three were among the top 10 performing funds in the world as per Lipper. Subsequently till the middle of 2013, he headed the PMS division of Prabhudas Liladher Pvt Ltd.

He is now a SEBI registered Investment Adviser. He is regarded as one of the Best Stock pickers in the Indian Equity Markets with a proven track record of picking out multi-bagger stocks. He has a knack of predicting short-term and long-term stock market movements and has correctly predicted various market and commodity cycles. He writes expert columns on Equities, Commodities & Currencies in prominent business papers. Having worked for more than 15 years in the MF industry, Sandip has strong and sharp insights into the functioning of various industries and stocks & their valuations.

Right now, Sandip offers a large number of portfolio advisory services personally managed by him. To read more about Sandip Sabharwal, you could google him or head over to his stock advisory service at or go to his facebook or twitter handles. Hum Fauji Initiatives has forged an exclusive tie up with him for two such services at extremely lucrative rates:-

  1. With the complementary Individual Stock Advisory service given for up to Rs 2500, your actual cost of Target Bluechip Portfolio and the Target Midcap Portfolio comes down to a mere Rs 19,100 + GST and Rs 18,200 + GST for the year.
  1. In case you wish to subscribe to Sandip Sabharwal’s other stock advisory services like Power Alpha plan, Platinum Plan, Short Term Plans or Trading Plans, the same can be made available to you at similar lucrative terms and conditions.
How is this Stock Advisory Service different from the Aggressive-3 Portfolio Launched by us recently?

For all those who wish to see the Aggressive-3 Portfolio details again, please click on the link

The differences of the two portfolios are as below:-

How to go ahead?

Just reply back to us on or

  • During Lock Down Period: Ring up on our VoIP number 744 711 892 Extension 212 (Shambhavi) OR mobile number 9999 053 522 (Priya).
  • During Other Periods: Ring up on our landline 011 – 4081 4681 (30 lines) and ask for Shambhavi or Priya.

We will engage with you and take you ahead from there.

Please remember that if you are interested in these Stock Advisory services, there could not be a better time to go ahead than right now when the stock prices are at such attractive valuations. However, do not forget that:-

  • Any stock investment has its risks and even at attractive rates of stocks right now, the risk does not go away.
  • Your risk profile should be such that you can withstand the volatility of stock markets unperturbed, since the volatility may continue for a long period of time, maybe of even a few years.
  • Your own future requirements and financial goals are much more important than getting high returns. Hence, please do not put any money in stock markets which you require for your own personal use or of your family members for next 4-5 years.
  • Hum Fauji Initiatives or Sandip Sabharwal will not be accepting any responsibility for any of the recommendations not performing as anticipated during our recommendations. Please exercise your own judgement and caution while buying and trading the stocks as recommended in the above plans and advisories.
20 Feb 2020
Sanjeev Govilla

Are you confusing Tax Planning with Financial Planning?

The tax season is upon us. We, and almost every financial advisory company in the country, receives numerous calls from people about the ‘the best’ tax-saving opportunity right now.

Somewhere tax saving is considered the best form of financial planning and in fact, all that is there to it. Is it so? Is your financial responsibility towards yourself and your family over with saving tax for the year?

May not be so.

This episode of Money Guru, telecast yesterday (5th Feb 2020) on Zee Business, deals with the aspect of Tax Planning Vs Financial Planning in comprehensive details. Our CEO, Col Sanjeev Govila (Retd), is the financial expert featured in the show explaining these aspects. The show covers the following aspects:-

1. Role of Tax Planning in your Financial Planning.
Understand the significance of financial planning for wiser tax planning that is in-sync with your life goals.

2. Life Goals for which Financial Planning is necessary.
Goal Planning for Life Protection considering the necessity and need for protecting your loves ones through Insurance for Life, Health and even term plan.

3. Power of Compounding and to how you can make Rs 3 Crore by allocating Rs 5000 each month.
Understand the categories of funds, risk appetite and the funds that are most appropriate as per your investor profile.

4. How to strike a balance between savings and investments in case of a new job or career shift? 
Understand the dynamics of Tax Saver Funds in your portfolio and how relevant it is for savings and investments in different life phases.  Similarly the scope of Small Cap, Mid Cap and Large Cap vis vis savings and investments.

Watch the complete video here,

08 Feb 2020
Budget 2020

Budget 2020 : Does It Change Anything in Your Life?

This year’s budget quite confused the financial gurus, media and even the stock markets; stock markets didn’t know how to react – plunged on the day of the budget, went sideways the next working day and then up from there. Let us see how the relevant provisions of the budget affect or don’t affect you.

New Optional Tax Structure. A new tax structure has been introduced with lower tax brackets. However, the normal deductions that one claims on Income Tax, ie, Standard Deduction (Rs 50,000), Section 80C deductions (maximum up to Rs 1.5 Lakhs in instruments like DSOPF/ PPF/ EPF, AGIF/ NGIS/ AFGIS, other life insurances, ELSS, Principal part of home loan, children’s tuition fee, etc), home loan interest (24(b)), NPS, medical insurance (80D), LTA, education loan interest (80E), etc will then not be available if you choose the New structure.

[For those financially inclined, all deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc) will not be claimable by those opting for the new tax regime.]

Income Brackets Current New Optional Structure
Up to Rs 2,50,000 lakhs Nil Nil
Rs 2,50,001 – Rs 5,00,000 5% 5%
Rs 5,00,001 – Rs 7,50,000 20% 10%
Rs 7,50,000 – Rs 10,00,000 15%
Rs 10,00,000 – Rs 12,50,00 30% 20%
Rs12,50,000 – Rs15,00,000 25%
Rs 15,00,001 and above 30%

The new structure is Optional. Should you opt for the new structure or continue with the old one? Income Tax Dept has made a calculator available for you at the link: Just feed in your visualized income details for the next financial year (Apr 2020 – Mar 2021) and come to know what to do. Also, remember that you can switch the tax regime every year between the old and the new regime. ‘Taxpayers can switch back and forth between the existing income tax regime and the new one that offers lower slabs without exemptions’, said the Central Board of Direct Taxes (CBDT) Chairman PC Mody. However, business owners won’t have this option.

Why has the Govt. introduced this new system? The overall aim is to simplify tax structure so that it is easily understood by the common man with the least of complications. We see all or most of tax exemptions going off in few years with tax rates coming down and personal tax calculations themselves being much simpler than they are today.

Dividend Distribution Tax (DDT) which the companies had to deduct at their end on the dividends being paid out (in shares and mutual funds typically) at a flat rate of 20.36% will not be deducted, the individuals will have to show dividends received in their own income and pay the tax as per their tax slab. This dividend will also be subject to a TDS (Tax Deduction at Source) at the rate of 10% if the dividend amount exceeds Rs. 5000 during the FY. However, please note that the dividend referred to here is the dividend received from shares as also from mutual funds. The gains made in the shares or mutual funds (called capital gains or increase in NAV/stock price) is not within the ambit of this tax, contrary to popular belief amongst some people post-budget.

Deposit Insurance. Last year, we had the infamous PMC bank scandal where thousands of depositors were left stranded after the RBI imposed strict withdrawal limits thanks to a major scandal. One of the biggest talking points was how it would have been amazing if bank deposits were insured beyond the nominal amount of 1 lakh, considering many people had deposits running into several lakhs all locked up because of RBI notification. The government has listened to us and increased the amount to 5 lakhs. So in case, you lose your bank deposits, you’ll now have 5 lakhs as insurance to protect your downside.

Definition of NRI (Non-Resident Indians) has changed now. Earlier, to qualify as an NRI, one had to be out of India for 183 days. The number of days has gone up to 240 days now. This will affect many individuals like merchant navy guys and NRIs who frequently visit India in a major way.

Tax on NRI Income. The Union Budget has proposed that NRIs had to pay up taxes on global earnings if they were not paying in any other jurisdiction or country, generating much debate, especially with regard to some gulf countries where there is no income tax. The ministry said it was an anti-abuse provision amid growing instances of NRIs shifting their stay in low or no-tax jurisdiction to avoid tax payment in India. Later it has been clarified that NRIs would be liable to pay tax only on income derived from business or profession in India even if they themselves are based abroad. However, some confusion about the merchant navy guys still remains since they are technically the resident of no country!

Employer’s contribution to provident fund, NPS and superannuation funds worth more than 7.5 lakh a year will be taxable. Please note that this pertains to yearly contributions and not the accumulated amount in such avenues. This provision is of concern only to the faujis who’ve transited to the corporate and are (luckily!) earning great salaries, and to similarly placed children and spouses of faujis. Of course, the serving faujis don’t have to bother – your employer (i.e the Govt) makes no contribution to your DSOPF – so no worries!

Other smaller provisions of this budget which may be of interest to some select few:

  1. I-T Act will be amended to allow faceless appeals so that the person appealing cannot be hounded by the IT Dept.
  2. Tax on Cooperative societies to be reduced to 22% plus surcharge and cess, as against 30% as at present. So your housing society can do some more good for its residents!
  3. Tax holiday for affordable housing extended by one more year. Additional deduction up to Rs. 1.5 lakhs for interest paid on loans taken for an affordable house is extended further till 31st March 2021.
  4. The tax burden on employees due to tax on ESOPs (Employee Stock Options) to be deferred by five years or till they leave the company or when they sell, whichever is earliest.
  5. Defense gets Rs 3.37 lakh crore as the defense budget. Last year. It was 3.18 lakh crores.
  6. 100 more airports to be set up by 2024 to support the UDAN scheme.
  7. More Tejas-like trains for tourists.
  8. India is now 5th largest economy in the world.
  9. Central Govt debt reduced to 48.7% of GDP from 52.2% in March 2014.
  10. Govt plans to sell part of its holding in Life Insurance Corporation (LIC) by way of Initial Public Offering (IPO). If it comes out on favorable terms, it’ll be a good business and stock to buy!

Finally Our Take on the Budget?

It is a budget that doesn’t do anything much earth-shaking to the Indian economy! Hard to see how the Rs 5 Trillion economies will be carved out from this, unless Govt does more things outside the budget ambit, like the way corporate tax was lowered a few months back.

The direct personal tax line of thought of the Govt is very clear now. Rates of personal tax will remain low but the innumerable tax sops that are present there right now will be phased out gradually. So, do not plan anything financial long term based merely on tax concessions.

Also, remember that these budget provisions take effect only from the financial year starting from 1st April 2020. So, the Income Tax Return (ITR) that you file this year in the Jun-Jul period (for the earning period Apr 2019 – Mar 2020) will still be based on the provisions existing today.

In the end, All Izz Well!
We can again get down to our lives and planning it well till the next budget comes around 🙂