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Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
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Have you recently got an increment in your salary? But at the same time are you stumped by the fact that you are even saving less than before? Well, this indicates that there is a serious issue with your finances which needs to be corrected as soon as possible. This is a common phenomenon with many as they are not able to increase their savings with the scaling income. This can be corrected only if the personal finances are evolved accordingly.

To check this condition, mentioned below are the reasons that cause this situation:

Living beyond Means
Everyone aspires for a better quality of life, but this doesn’t mean that one will start spending beyond their means. To live a financially balanced life one must focus on savings and investment.

Naturally, our wants increase as our income scales up but having control over these tones for our financial future.

Spending more on Credit Card
As the income scales up, so does the access to powerful financial tools. This includes a higher limit credit card and increased eligibility for different loan amounts.

All this feels tempting and people start spending more on their credit cards. Some even go for personal loans for big purchases or gadget updates. But, when you get access to such financial tools, it is important to use them wisely. This is because- be it the credit card or personal loan the interest charged on these are high. This ranges from 16 to 32% for credit cards and 10 to 16% for personal loan.

So, before you use them think twice and always analyse your repayment capacity and affordability.

Investment is Ignored
Investment is the key to a healthy & secure financial future. But, this is often ignored by the majority of people. Generally, youngsters find it boring and think it’s just the start of their financial life and they can invest later.    

But it’s a fact that just saving money in your bank account is not enough to live a secure financial life. Investing money not only puts your hard-earned money in the right place but also secures your future. Investment in mutual funds, stocks, shares, IPO, etc. is a few great ways to increase your wealth. 

Not Tracking the Spends
The key to a secure financial future also lies in tracking your spending. Knowing where your money is going helps you analyse your finances. This can be easily done by analysing your bank statement, credit card statement, and maintaining a spreadsheet of your expenses. Doing this will help you keep a track of your finances and to achieve financial freedom.

Going for loans unnecessarily
Loans are financial tools that can prove to be quite helpful in emergencies. But, it’s a fact that loans come with a commitment that needs to be fulfilled for a long time. So, availing it only when necessary is the wise thing. Loans like personal loans come with tempting offers and are easily available with any of the banks. But for balanced finances, it is important to go for this loan only after doing a proper calculation. For this using EMI calculators before availing of the loan will help you know your EMI and hence plan your finances accordingly. Moreover, before you go for a loan, it is important to know how much necessary it is for you to borrow money. And avoid it until it’s not necessary. 

As the income increases so do our dreams for a better life. However, it’s only up to us that we want temporary happiness for a sure future. Remember controlling our desires and proper financial management strategies can be the keys to a secure future.
You will agree with the fact that having money brings a sense of security. This is because we need money for our survival, whether it be food, shelter, gadgets, clothes or any other thing. However, it’s true that money can’t buy happiness but it’s also true that money can buy us things which give us happiness.  

But, earning money is not enough if you want to enjoy financial freedom and live a secure life. Achieving financial freedom is a state which brings lots of security and mental peace and needs money management skills to be practised. With lacking money management skills, you may always feel like you are one step away from a financial cliff. But, when you are able to manage your finances well, life becomes easier and you have more time to focus on other important things in life. Money management skills are something which our parents have kept on practising which has helped to grow. 

Living Within the Means
This is one of the habits when followed strictly can lead to saving a lot of money. We all earn money in some or the other way and use it for our survival and to meet your requirements and desires. But when you start spending it towards your desires without thinking about your finances can lead to a black hole in your financial life. In such a case, whatever you earn, it will never be enough to meet your desires and on the other hand, you will not be able to contribute much toward investment and future planning.  

The simple tricks of bargaining before you buy anything, being strict about bill payments timely to avoid late fines, avoiding eating out, maintaining a monthly budget and having a track record of all your expenses. These are some basic financial management tricks which our parents have always followed and it’s something which we need to inherit from them if we want to exhale in money management skills. 

Save As Much As You Can
No matter how much we earn, if we are not able to save we can never enjoy financial freedom. Our parents diligently kept saving even in small amounts for our future. This not only helped them to give us a better life but also a secure future. 

Saving money also helps us to create a substantial amount of wealth over time which can be used later to fulfil the goal of giving the best education to our child and living a relaxed retirement life.

But, in order to achieve this, we need lots of patience. Savings doesn’t happen overnight and most importantly if you want to pile up your savings you will need years. However, many of us lack this skill as they want to create wealth faster. And to do that in a short span many start chasing the best performing funds or constantly checking the share and equity market. 

Having Insurance and Investment Both
Having investment grows your money over time whereas having insurance provides you cover. Both of them are equally important to have balanced finances. 

Investment: it’s a must to do things in order to create wealth and achieve financial goals. But before you invest there are many things which you need to know:

  • what are the investment options which give you maximum returns?
  • What are the investment options you can start with the minimum and maximum of funds?
  • Which grows your money faster.
  • Where your money is more secure.
  • Tax saving investment plans.
  • The government offered investment options.

Insurance: Having insurance provides you with cover from the financial risks. Certain insurances also provide returns as the maturity benefits along with the cover against the investment made. 

Buying life insurance, health insurance, term insurance are some of the common ones which keep you covered from estimated financial risks.

Things to keep in mind before you buy insurance:
  • Benefits offered.
  • Coverage
  • The amount you need to pay as premiums
  • Maturity benefits
  • Returns
  • Tax exemption whether applicable or not.

Not to Redeem Your Investment Until it’s an Emergency
Redemption from your investments is a huge thing, it not only reduces

What is the no. 1 Wealth Generation Strategy answered by most billionaires in India today? 48 % of Indian millionaires rely on to make a fortune? Want to expand your wealth & earnings without you working hard for it?

Have you been able to effectively utilize the money-stretching power of specific wealth investment strategies that have outperformed nearly every other ‘Traditional’ investment in the last few decades in India?

Look, the days when real estate gave returns of approx. 35% YOY is history. It’s now left down to meagre returns of just 4-7%. Gold is losing its standard returns capacity. And we know that fixed deposits and bonds will fall flat against inflation and the biggest mistake is storing a part of your remuneration into saving. It will never grow on its own.

It’s like you working hard to make money, instead of making your money work for you.

Undoubtedly, 83 percent of millionaires acknowledge ‘Smart Investing’ as a key to their fortune and 48 percent of millionaires’ investable assets are in stocks.

What I want to bring to your notice is, in the long run, investments that have appreciated far greater than anything else in the investment asset classes are Hedge Funds, Arbitrage, Stocks Portfolio, SIPs, Private equity, etc.

You see, people rely on traditional investment assets because of tangibility, capital appreciation, and low risk. But the much greater threat is the down and sluggish return on these investments that may not even stand against inflation in a decade or two.

After all, why would anyone want to get minimal returns on their investments when you can get a dazzling rate of compounding returns per annum in the long term?

To create massive wealth, investors must choose some quality mid-cap stocks today, so that would become a large-cap potential stock in the near future. Opportunities are being presented by the market.

Consider this, over the last 20 years, the stock market has grown at a CAGR of 17%, giving the greatest returns of any asset class in India. Fabulous, isn’t it? It reflects investors’ optimism about investing in the Indian economy & new companies/businesses through stock exchanges, even in a global pandemic crisis. Plus, many of the stocks today are selling at a significant discount to their intrinsic value, and they are going to explode in the next 5-7 years, making their investors filthy rich. I see an utterly predictable, virtually unstoppable, and absolutely massive uptrend in front of me.

In this upward shift that virtually guarantees soaring profits, the question is, how much you will be able to grab and keep in your vault? Now here’s the biggest problem, because of the lack of knowledge and improper guidance, most everyday investors ignore these wealth-building opportunities and could never enjoy the Exponential wealth-building process with the power of compounding.

A very powerful proverb says, “The best time to plant a tree was 20 years ago. The second best time is now.” And since compounding means to earn a profit on profits, the sooner you start, the sooner you will be able to grow your investment portfolios at a geometric rate.

Since it’s a matter of your wealth, consult an expert who has a proven track record and can accurately guide you with the best portfolio investment strategy based on your wealth goals, earnings and lifestyle.
When we are in our early 20s, most of us are actually growing into an adult. While is it is nice to be growing, it is also the time when many of us enter the job market with a realization that we have to work seriously and earn to pay the bills and live the kind of life we desire.

The early 20s is also the period when by taking a few smart steps, you can ensure to be wealthy in your 30s and beyond. You can make this possible by making your money work for you by following a smart investment strategy in a disciplined way.

When you are in your early 20s, you must have heard that time is on your side and your money can compound. Actually, what happens is that if you start investing at the age of 20 and invest till the age of 55, the final corpus will be much larger than what you may get if investing from the age of 25 because of the power of compounding. Initially, you won’t see a lot. But if you start investing early, you will see amazing returns, due to compounding at a later age.

You will be surprised to know that even Warren Buffet started investing when he was 11 years old. Currently, he has a net worth of around 103 billion dollars. Interestingly, around 100 out of the 103 billion dollars came after Warren Buffet’s 65th birthday!

Now, you may be thinking about how to start investing, how much to invest and where to invest.

Thanks to several apps, investing is as easy as playing a game on a smartphone these days. But to know how much should you invest, the trick is as much as you can. The more the better!

How much to invest
The first thing you need to do is save as much as you can to invest. For this, you can divide your income into three categories – Needs, Wants, and Savings.

Dedicate a fixed percentage of your income towards savings. The Thumb rule is 50:30:20 i.e. 50% for needs, 30% for wants, and 20% for savings. But now that many of you are living in your homes due to work from home, you may afford to dedicate a larger part of your income to savings.

If you dedicate a fixed amount to saving, you will be disciplined. And, you need to be disciplined in your 20s for better returns at a later age. The saving you want to do every month should be a realistic number. You should optimize it. Spend but not splurge!

Before investing

  • First, It is not right to immediately start investing. Instead, you should clear off your debts (credit card dues, loans, etc.) as these make you pay very high interests.
  • Second, ensure you have your life and health insurance. Insurance covers are necessary to meet unexpected emergencies.
  • Third, have an emergency fund. This can be equal to 3-6 months of salary expenses. An emergency fund can also be created along with investing.
  • Fourth, invest in yourself. Learn new skills or buy new equipment that may help you do earn more.

Where to invest
There are three options: Equity, Debt, and Alternative investment

Equity investment can be done via direct stocks or mutual funds. Investing in direct stocks is very cumbersome and tricky. For starters, an equity mutual fund is an easy option for investing in equities.

There are two types of MFs:
1. Passive Funds (index funds)
2. Active Funds

Investing passively means the mutual fund manager does not have to put his brain. Here, the manager will blindly copy all the indexes and you may get a return that is at least equivalent to returns of the market.

Starting SIP in index funds is a very good first step as the return is equivalent to the market. It is good for starters. You can start investing in other funds when you start knowing more about them. With an index fund, you can’t go very wrong in selecting also.

However, there are some funds that still beat market returns. So it is not advisable to put all the money in index funds.

Inactive investing, the mutual fund manager puts in his brain. But you need to do some research to find the best funds to invest in.

How to select a good mutual fund
You need to check the factsheet of the mutual fund to know about

  • Past History
  • Expense Ratio (1.3-1.5%, it should not be more than that)
  • Asset Under Management (Large AUM means the fund can be assumed to be safer)
  • Fund managers profile – Check his ideology, track record
  • Companies in the MF – Check all the companies and industries in which the fund is investing.

Debt investing can be done Directly. But it is not advisable for retail investors. It is better to invest in Debt mutual funds. It is also good if you are investing for less than five years and to get the overall risk of the portfolio down.

A debt mutual fund is something in which you should look for investing for less than 5 years.

Types of debt fund
– Ultra short term/liquid fund (less than a year
– Short term: 1-3 yers
– Medium: 3-5 years
– Long term: 5+ years

While investing in a debt mutual fund, it is important to ensure that the time horizon you have, your debt fund should have the same time horizon.

How to select debt MF
You should not chase excessive returns
Check fund manager’s history of 10 years
Check quality – 70%, minimum A rated
Check where the money is invested – PSU, corporate.

Check brand name
Check Asset under management
The thumb tule for investing in debt is that it should be equal to your age, But depending on your risk appetite, you can increase or decrease it.

Initially, you should select 1-2 good mutual funds, select one 1 good debt mutual fund and start investing. Ideally, you should keep your investment as simple as possible and disciplined for truly benefitting from the power of compounding.

Alternative options
The alternative investment options are Gold, cryptocurrency, REITs, foreign stocks, etc. All of these have varied risks and benefits. You should be aware of them before investing.

Your investment in alternative options would be around 10-20% of your portfolio.

For tax-saving, you can invest in options like PPF, NSS, ELSS, 5-year Fixed Deposit, etc.
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.