Blog

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 ...
Read More
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 ...
Read More
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 ...
Read More

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 ...
Read More
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 ...
Read More
Infrastructure Leasing & Financial Services

IL&FS – What is the problem

What happened? IL&FS Group, a vast conglomerate that funds infrastructure projects across the world’s fastest-growing major economy ,ie, India, sent waves through Indian credit markets when it began missing debt repayments. What is IL&FS? Infrastructure Leasing & Financial Services Ltd (IL&FS) is a more than 30 years old conglomerate. The company has been a pioneer of public-private partnerships, with a portfolio of about 13,100 kilometres of roads and other assets. Major shareholders include India’s largest insurer LIC, its biggest lender State Bank of India and Japan’s Orix Corp. On credit quality, IL&FS group’s debt securities always looked good. The rating for IL&FS Financial Services Ltd was reaffirmed A1+ (top most rating—highest probability of repayment) before the crisis surfaced in August 2018. What happened to IL&FS? IL&FS would take a short-term financing loan and provide long term funding to projects. This, over a period of time, created pressure in the company ...
Read More

Writing of Will and A sample format by Hum Fauji Initiatives

We have amended the format of Will which we had been sending to you and to our Financial Planning clients. We have made it in a word format so that you can edit it as you deem fit to suit your requirements. Also, we neither have, nor intend to have a copyright to this format - hence, you can freely distribute this format to anybody whom you wish to benefit. The format should largely meet the requirements of most of the families and may not require any major changes in most cases. Please remember that there is no fixed format of a Will and it can be written in a manner that you find best suited to you. However, there are certain guiding points which you may find useful while preparing this important document:- You need to be at least 21 years old to write a Will. Do use the ...
Read More

Are you being over-charged by Financial Advisors like Us?

There have recently been many advertisements promoting ‘direct’ plans of mutual funds, giving out your ‘losses’ if you invest in regular plans of mutual funds as opposed to direct plans. Some officers have discussed it with us since they’re confused as to what is the truth. We would like to clarify the air about it. First, we found that not all of those calculations put out in these advertisements are correct - most are highly exaggerated. The truth is that Direct plans will always be cheaper than regular plans simply because there is no Advisor fee built into it.  But we do want to tell you why direct plans may not be as rosy as these advertisements make it seem. What is a Regular and a Direct plan in mutual funds? In Direct Plans, you buy directly from the mutual fund company. Hence, you select the funds yourself, balance the ...
Read More
financial planning for your earning child

Financial Planning for your earning child?

‘I hope my son doesn’t manage his money like I did when I was his age!’‘ Don’t think my daughter knows that there’s life beyond 20s too…she at least spends so and has saved maybe Rs 10,000 in the past four years that she’s been working.’ ‘I’ve given up Sanjeev. My kids have categorically told me not to talk to them about saving anything from their salary. When they need any money, I’m their ATM…and mind you, they earn almost as much as me, with no responsibilities.’ While we’re not going to dwell on the parenting aspects of your life, we can definitely give you some idea of how your children should go about their financial lives and end up much better than where they seem to be headed now. Ease it in gently into your children and we’ve seen some good results come in even from ‘hopelessly-given-up’ parents!! A ...
Read More
Real estate insights

What’s happening in residential real estate and Why? An Insights

‘See Sanjeev, I have the money since I’m recently retired, property is actually very cheap now and I don’t have too many liabilities. Then why the fxxx are you not letting me buy a good property?’ ‘But Sir, why real estate of all the things!’ ‘Everybody knows that property only goes up, you get good rentals and you can even take a home loan and save so much of tax!’ ‘Sir, the property has only moved downwards in the past 4½ years, rental returns are traditionally only 1½ - 2% of capital value, and you save 30% tax on the home loan interest paid but you pay the balance 70% more too to save this 30%. How is it a good investment?’ And after this conversation and more, the senior officer went ahead and invested in a residential property with most of his retirement corpus!! As far as I know, ...
Read More
Loading...
Micro-learning Initiative by Hum Fauji