Blog

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 ...
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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 ...
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My equity investments are in losses, what should I do?

My equity investments are in losses, what should I do?

When the markets are going down, the value of people’s market related investments like stocks, equity mutual funds and ULIPs also go down. This has probably been the case for most investors who started investing within the last 2 years and now see their investments in the red after the markets started their downturn sometime in 2018. So why have the such investments been disappointing lately and what should an investor do now? We’ll explain with the example of equity mutual funds. Markets work in cycles The answer, of course, is to deal with volatility. Over a period of 5 or 6 years, the returns are often great but the variability is high. In any given short period, you could face poor returns, or even losses. There's another way to look at it. The equity markets move in cycles, and often it takes five to seven years to go through ...
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PMS

PMS – What is it?

Portfolio Management Service (PMS), as offered by a large number of PMS companies, has a very concentrated portfolio consisting of about 20 high-conviction stocks (shares) managed in a very ‘hands-on’ manner by a professional portfolio manager. PMS surged in popularity last year after generating outstanding returns, much over the market indices and even most of the mutual funds, during that bull market (2017-18). However, they also fell equally fast when markets entered a bearish phase later in the year (2018). PMS almost always invest in small companies which have not been discovered by the general investing public - and that precisely is where the risk is. Such stocks are likely to go up hugely when markets go up but are also almost the first ones to fall down when the tide turns. Eg, one of the most popular PMS was down by about 50% last year-end when markets went down ...
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Trade your bank FDs for these Non-Convertible Debentures (NCDs) from a L&T Company

Dear Sir/Madam, L&T Finance Limited (L&TFL), an L&T (Larsen & Toubro) group company, is coming out with an offer of Secured Redeemable Non-Convertible Debenture (NCDs) Public issue offering very attractive rates of interest rates in the range of 8.89% - 9.35%. Who is it meant for? They are meant as a superior, higher interest bearing alternative to other safe investments like bank FDs, Post Office deposits and even most of the corporate FDs for a period ranging from 37 months – 120 months. Along with the high interest rates on offer, there is also the flexibility of choosing the frequency of interest payment in the form of monthly, annual and cumulative interest pay-outs. So, if you’re looking for a safe, high interest bearing and flexible FD, these NCDs by an L&T Group company could be a good alternative to your bank FDs. Further Details L&TFL is offering NCDs with a face ...
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Financial Question And Answer

Do these financial googlies worry you too as an Armed Forces Officer?-4

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days ...
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Financial Question And Answer Sessions

Do these financial googlies worry you too as an Armed Forces Officer?-3

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days ...
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Financial Question Sessions

Do these financial googlies also worry you as an Armed Forces Officer?-2

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9thJan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 days. This one ...
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Do these financial googlies also worry you as an Armed Forces Officer?-1

Q&A at talks on Financial Management given by CEO, Hum Fauji Initiatives, to Higher Command Course at Mhow and Armed Forces Program Officers at IIM, Indore on 9 th Jan 2019 Our CEO, Col Sanjeev Govila (retd), had been invited to give a talk on ‘Personal Financial Management for Indian Army Officers’ to the students of Higher Command Wing, Army War College, Mhow. He also gave a talk to approx 35 officers undergoing the ‘Armed Forces Program’ (AFP) at IIM, Indore the same day. The talks were well appreciated at both the places and the Question & Answer (Q&A) Sessions at both the places far exceeded the time allotted. Some of the questions asked, of common interest to serving and/or retired armed forces officers, are summarised below. Due to the sheer large number of questions asked, this will be given out as a series of 4 parts over next 8 ...
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Safe Investment Avenue

Want higher rate of interest without compromising on safety?

When it comes to safe investments, most Armed forces officers don’t look past DSOPF (if serving), PPF or bank FDs. They derive comfort from the fact that these are extremely safe fixed income investments. However, these avenues have many shortcomings – DSOPF has a low return, PPF has a low return combined with the restrictions of withdrawal as also the yearly investment capped at Rs 1.5 Lakhs only, and the bank FDs actually erode the purchasing power of your money post-tax which is unavoidable. If you take a bank FD rate of interest to be 7% today and you are in 30% tax-bracket, you actually get just 4.9% on the FD after taxations, which is far less than India’s long-term inflation rate of 7%. Hence, while cost of things gallop at 7%, your money continues to sleep at 4.9%.  This is where good alternate investment avenues come in, which provide ...
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Micro-learning Initiative by Hum Fauji