Categories: Financial Cocktail Samosas


Lots of investors are worried about the way stock markets are going down across the world and the future of their investments due to this virus.

The previous virus outbreak of this scale was the SARS virus in 2003, but the circumstances were different then  markets across the world had been suppressed for quite some time and China wasn’t such a strong global player. It led to a significant correction in the markets especially in South-East Asia; but then later, there was a very strong rally across the world when the virus subsided. Similar scenario seems to be playing out now – the difference being that China is a much bigger player well embedded in global value chains and a large consumer of commodities. For India, China is also a source of big inputs in pharmaceuticals, electronics, and chemicals.

Of course, whenever such a ‘pandemic’ is in full force, the uncertainties create panic. Discussions with medicos indicate that this virus starts losing its potency quickly in warm season. So, we feel that this is a transitory phase which just needs to be gone through, maybe even providing good buying opportunities. As time passes, countries gear up their act, weather across the globe becomes warmer and some complete or partial anti-virus solution is found, this too shall pass.

Rajiv Sanoriya, Humfauji Gurgaon

February 28th, 2020

The latest budget increased the ‘insurance’ on your bank deposits to Rs 5 Lakhs. Have you wondered what is it and what has been increased?

In simple words, if any commercial scheduled bank decides to call it a day, you are assured by the RBI that you will get Rs 5 Lakhs or your amount in your savings bank, whichever is lower, within two months of receipt of claim.

How will you get it? The Deposit Insurance and Credit Guarantee Corporation (DICGC) of RBI insures each account holder’s investments / deposits in commercial banks, including foreign banks, upto a limit of Rs 5 lakhs (it was Rs 1 Lakh earlier). RBI charges a yearly ‘insurance premium’ from the banks for it. For individuals having more than one account, each bank’s accounts are separately insured. Joint accounts, where names of account holders appear in different sequence, are also insured separately. However, those with the same sequence, are aggregated and insured as one.

Brig MC Pant (Retd), Humfauji Gurgaon

February 28th, 2020

Large number of retired officers keep asking us about avenues for getting tax-efficient monthly income. Having considered almost all available avenues like real-estate (residential or commercial) rent, POMIS (Post Office  Monthly Income Scheme), SCSS (Senior Citizens Savings Scheme), monthly interest from bank FDs etc, we find that the Systematic Withdrawal Plans (SWP) of Debt Mutual Funds are the best in terms of tax-efficiency, flexibility of withdrawal, flexibility of investment, and better returns on investment.

If carefully planned, one could pay as low a tax as 4-5% on the monthly income received even if you are in 30% tax bracket! And this ‘additional pension’ amount can be set-up as per your need at a frequency as desired. Further, this amount can be increased, decreased, stopped, or restarted any time one wants. Returns from Debt MFs are likely to be higher than any of the other avenues while being invested as safely as bank FDs and Govt Bonds.

July 26th, 2018