Outlook Money - December 2015 VK Com Englishmagazines

Expert Speak: Nilesh Shah pg 30 My Plan: Getting methodical pg 68
` 50
December 2015
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Your guide to efficient tax planning

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TO MY FINANCIAL LIFE?
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So what do I do with my money?

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BALANCED FUND
Growth potential: At least 65% invested in a well diversified equity portfolio
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Tax free: No tax on capital gains if investment held for more than 12 months
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Capital growth and income over a long term investment horizon
Investment primarily in equity/ equity related securities, with balance exposure Mutual Fund investments are subject to market risks, read
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Contents December 2015 ■ Volume 14 ■ Issue 12
pg 38
not so taxing
By not reducing tax savings to a mundane
year-end exercise, you can save a lot of
your hard-earned money
Regulars
8 Letter 14 Queries 20 News roll 92 smart Money
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www.outlookmoney.com December 2015 Outlook Money 5

Contents
28 Investment destination
The spiritual city of Nashik, with
its booming industrial projects, is
pg 62
witnessing massive realty interest
Family finance
Moving back to the roots
30 Expert speak after spending years in a
Nilesh Shah, MD, Kotak Mahindra
different country entails a
AMC, on why investors should let
lot of planning
experts manage their money
32 Stock pick
GRUH Finance’s excellent track
record of financial and operating
performance and asset quality
makes it a good long-term buy
35 Insurance made easy

Life insurance is never a one-time
call and should be reassessed at
different stages of life
68 My plan
The Borwankars need to bring
order to their investments to meet
their financial goals
76 Tail light
Maruti S-Cross and Hyundai Creta
go head-to-head in the battle of
entry-level luxury SUVs
pg Insuring your start-up

72 A start-up needs to have an insurance cover to
shield itself from any unforeseen incidents
82 86 Book review 88 Travel

Technology The Silo Effect by Gillian Tett; A Set in the lap of lush green moun-
We list out the top wearable Wealth of Common Sense by Ben tains, Lansdowne is not only a
fitness gadgets and mobile apps Carlson; and Quote Me If You Can birdwatcher’s paradise but an
for the fitness brigade by N.S. Rajan interesting place for trekkers, too
6 Outlook Money December 2015 www.outlookmoney.com

Money Talks
Cost To Country (CTC)
T
he 7th Pay Commission experience of the 6th Pay
report and its recommenda- Commission. However, one should
tions have resulted in remember that the 6th Pay
economists and analysts hail- Commission came into effect in
ing it as the windfall, which will act as 2009-10 and was applicable retro-
the necessary catalyst for economic spectively from 2006. Effectively,
growth. Yes, the overall 23.6 per cent most government employees
increase in the salaries and pensions received arrears, which left them
of central government employees does with more money in hand that
leave more money in the recipients’ could be utilised on purchasing
Benefits stacking up hands but, at the same time, it leaves a goods, indirectly boosting the
Can the government sustain it?
big hole in the exchequer’s pocket. The economy. This time around, the
cost incurred by the government to toe recommendation are expected to
the recommendation of the 7th Pay come into effect from January 2016.
Commission will amount to `1,02,100 Even if the actual payouts happen
crore in 2016-17. a few months later, the arrears will
Ask any business and they will tell not be very huge. The incremental
you how much they are working sum will not find its way into gold
towards cutting costs, trimming the or real estate investments, given
workforce and increasing efficiencies. the kind of returns these have been
In contrast, the government is increas- earning to boost the economy.
ing its wage bill without having a clear Strangely, one idea mentioned in
view on how it will sustain this cost. the 7th Pay Commission report, if
The premise on which this additional accepted, could change the way
cost is being funded today rests on a retirement benefits are currently
lot of hopes—that government treated for government employees
employees will start spending the who joined the services from
gains that they will have from this January 1, 2004 and are part of the
increase. But that is unlikely to be the National Pension System (NPS).
case. The increase in pay after a Currently, the NPS structure is
decade is 23 per cent, which when such that on retirement, the
annualised, works to a little over 2 per withdrawals are taxed, which the
cent each year. Smart government pay commission report has recom-
employees, despite having access to mended should be tax-exempt in
kendriya bhandars, know that the order to place the pension system
salary increase in no way matches the at par with other schemes. Here’s
Narayan Krishnamurthy price rise of essentials. hoping the NPS gets the necessary
nk@outlookindia.com Moreover, the assumption that booster shot and the withdrawals
government employees will splurge become tax-free for even ordinary
and spend money, which should citizens and not just the central
revive the economy, is based on the government employees.

Talk Back
Editor
Sound fundamentals Narayan Krishnamurthy
ASSiStANt EditorS
I found your cover story to be to the Anagh Pal, Vivek Malik
point about why investing directly CorrESPoNdENt
Himali Patel
in stocks is meant only for some rEPortErS
and what one should know before Aakar Rastogi, Khushboo Rajput, Kritika
Srivastava, Shipra Sharma, Sai Akhilesh
investing in them. I like the approach
CoPy dESk
you have taken because my 10-year Surmeet Kaur, Sabari Saran (Sr. Sub-Editors)
experience of investing in stocks has Art
Vimal Sarkar
been a hit-and-miss affair compared Praveen Kumar .G
to investing in mutual funds. PhotogrAPhy
I appreciate the logic behind sharing Gireesh. GV (Picture Editor),
Soumik Kar, R.A. Chandroo (Photographers)
the fundamentals of building an tECh tEAm
investment portfolio as mentioned in Raman Awasthi, Suraj Wadhwa
your story and the absence of stock picks. Business Office
Harpreet Dhillon, Gurgaon PrESidENt
Indranil Roy
ASSoCiAtE PubliShEr
Johnson D’silva
Economic moats at a time when several IPOs are ViCE-PrESidENt
I am a fan of your magazine and coming up and look very lucrative Prashant Kapoor (New Initiatives)
found the mention of economic to small investors who do not realise Advertisements
moats very useful. I think it is time the flip side of IPOs. NAtioNAl hEAd
Santosh Nair
you do a feature just to share the list Rathin Lahiri, Kolkata SENior gENErAl mANAgEr
of companies that qualify as having Kabir Khattar (Corp)
economic moats that we can still olm Elite Uma Srinivasan (Chennai)
rEgioNAl mANAgEr
invest in. The few examples you I was upset that the OLM Elite list T.V. Kumar (North)
shared including Maruti Suzuki, was not featured in your October Rajiv Nair (Bangalore)
SENior mANAgEr
Asian Paints and Pidilite are actually issue, but was glad to see how the Suchitra Vaidya
very good stocks to stay invested in investment has progressed. I am Circulation
any market. After reading this story, an Ultracool investor and have NAtioNAl hEAd
I understand that stock investing been investing in the suggested Anindya Banerjee
ASSiStANt gENErAl mANAgErS
calls for a lot of discipline as well as portfolio for over six months now. Vinod Kumar (North), G Ramesh (South)
attention, which I do not possess. I am gaining confidence with ZoNAl SAlES mANAgEr
However, with some clarity on how each passing month and will be Arun Kumar Jha (East)
mANAgEr
to go about investing, which was increasing my investment from Vinod Joshi
mentioned in your story, I will try to `2,000 to `4,000 in the three funds dEPuty mANAgEr
follow an investment strategy that that I have selected from this Shekhar Suvarna
will work for me. category. If you could include the Production
Sarthak Patnaik, Bengaluru views of the fund managers as well, ASSiStANt gENErAl mANAgEr
Shashank Dixit
it would offer more insight on how SENior mANAgEr
to do or not to do the fund was managed in the past Shekhar Kumar Pandey
The opinion by Dhirendra Kumar quarter and one could also look for mANAgEr
Sudha Sharma
was bang on. I am more convinced a few cues for the coming months. dEPuty mANAgEr
about investing in mutual funds Harish Kanitkar, Mumbai Ganesh Sah
after reading his candid views on ASSiStANt mANAgEr
Gaurav Shrivas
why he prefers mutual funds over I was using the portfolio services
direct stock investing, despite of a leading broker who would Accounts
gENErAl mANAgEr
having access to stock analysts and classify aggressive, moderate and A.G. Subramaniam
information that many others do low-risk categories, which never ComPANy SECrEtAry & lAw offiCEr
Ankit Mangal
not possess. This is really valuable made it clear if it suited my profile.
SENior mANAgEr
Diwan Singh Bisht
Letters must be addressed to: The Editor, Outlook Money, AB-5, 3rd floor, Safdarjung Enclave, New Delhi Administration
110029, or letters@outlookmoney.com. Please mention your full name and residential address. ASSiStANt gENErAl mANAgEr
Rajendra Kurup

Talk Back
After reading OLM Elite, I have areas that are now coming up and
realised that I fit into the Safe Player mentioned the rate of residential
stereotype and have started to property, which gives an indication
invest in all the funds under this of how the city is evolving as a real
category. The returns are very good estate option. I am looking for the
and I feel the biggest advantage is SEZ to get some traction before
that I do not have to overly worry considering investing in the city.
about how the funds will fare as I Thanks for your timely update.
can see their performance in your Vijay Gore, Pune
magazine every quarter and also
make any changes necessary. money than in the past, when I had Senior-friendly gadgets
Kunal Brahma, Delhi to pick a set of funds from a long list, The article on gadgets for the elderly
making it an arduous and difficult was very useful and informative.
I have been closely following the task. Keep up the good show. Not only were the suggestions
portfolios you started featuring Deepak Mathur, Gurgaon practical, they made immense sense
earlier this year. I found the logic to consider a purchase. My father
of creating five user profiles and Destination Indore has several medicines to take each
indicating their expectations and I am a former resident of Indore and day and I was looking for a device
stereotypes very informative and found your coverage about Indore like the med-e-lert, which looks like
user-friendly. This way, I am far as an investment destination bang the perfect gadget for him. I did not
more comfortable investing my on. You had covered most of the realise that there are safety locks too
that exist, which are senior friendly.
Continue the good job of featuring
Prize Strategic investing
more such utility devices that will
Letter help us in our homes.
Ranjan Dutta, Delhi
This was a very different type
of cover story, which was also
Write In!
Share your comments,
unusual. I was expecting to see opinions and Smart tools for start-ups
a list of stock to invest in. I was suggestions with The enterprise story detailing
Outlook Money and
disappointed not to see a list but a the best letter in every the free software tools that small
sermon on investing. Yes, it did make issue will win enterprises can benefit from was
me think, but I would have liked to read worth the read. I have a small
about which stocks to invest in instead consultancy service and I have been
of reading about investment approach. MPRofit looking for backend support, which
Portfolio ManageMent
While you had mentioned early on Software worth has always been a challenge. With
in the story that no stocks will be
mentioned, such stories work for people
` 4,500/- some of the ideas mentioned in
your article, I have found a reliable
like me as a tip on where to invest. way to manage my business affairs.
Sunny Kumar, Delhi Sanjay Rao, Mangalore
Editor’s reply My plan

One of the reasons to not do a regular The Ojha family is representative
feature on which stocks to invest in of how Indians live and I can
was that we anyway share a stock empathise how their focus so far
pick every month. We also update has been to get a house of their
the performance of our stock picks own. This is the story of most Indian
routinely in our News roll section. households and I am glad you
Considering your request, we are cover such features regularly, which
exploring the possibilities of creating a can act as a catalyst for others to
stock portfolio on the lines of OLM Elite, start planning on how to manage
which focuses on mutual funds. Watch their money so that they can work
out for a section on stock portfolio in the towards achieving their financial
coming months in the magazine. goals without much hassle.
Preeti Naik, Mumbai

Queries
Siddharth raman, Bengaluru
i was a non-smoker when

i bought a health insurance
policy three years ago.
now, at 35, i have started
smoking. do i have to
inform my insurer about it
when the policy is renewed
this year? What will hap-
pen if i conceal the fact?
Usually people do away with
a bad habit; you seem to
have picked one. Smoking
is a choice that you have
made and we leave it best
for you to be the judge of it.
What you need to know is
that insurance works on the
principle of utmost good claim that arises in the future on the insurance cover and
faith, which means that which can be linked to be a your age, the insurer may
when an insurance company result of your smoking habit, increase the premiums
receives your proposal form, the insurer would have the to be paid on this policy.
it underwrites the risk on right to reject your claim as you It is important for you to
the basis of the information failed to inform them of this inform any change in your
provided by you and expects new condition. health condition as well.
that you have stated all the So, it will be in your good For instance, if you were a
material facts. interest to inform the insurer smoker when the policy was
As the policy was sold with about your smoking habit taken and have stopped
the premise that you are when you get the policy smoking now, you should let
a non-smoker, if there is a renewed this year. Depending it be known to the insurer.
Himani CHaturvedi, Gurgaon is the one asset class that has the that are terminal in nature—cancer,
i have `10 lakh from which i potential to earn high returns in the stroke, organ failure, coronary
wish to generate ` 20,000 long run. Also remember that equi- artery bypass, and more.
monthly income. Can you ties carry the maximum risk among These policies offer an immediate
suggest the best possible all investments. lump sum amount equivalent to the
way to achieve this? Opt for stocks only if you under- sum assured of the policy in case
To generate `2.4 lakh a year from stand investing in them and can the policyholder is diagnosed with
`10 lakh means you are looking for handle it on your own. If not, we any of the critical illness covered.
24 per cent annual return or higher suggest you invest in diversified You will know the various critical
as you are actually looking to derive equity mutual funds from the OLM illnesses covered by the insurer
`20,000 income every month. There Elite list, which we share every when you opt for such a rider, which
is no investment that guarantees 24 quarter in our magazine. means anything other than the ill-
per cent return so if you are looking nesses mentioned does not qualify
to earn such returns by way of rajesH meHta, Ahmedabad for a claim.
investments, it will not be possible. What is a critical illness rider But do not treat these policies as a
You can consider investing in equity and how is it useful? substitute to a general health insur-
as an asset class and invest directly A critical illness rider is a limited ance plan. These complement
in stocks or diversified equity cover insurance that you can add to health insurance policies and
mutual funds. The key reason to put your life insurance policy. A critical should be taken by you as an add on
your money in equity is because it illness rider covers those illnesses to a general health insurance plan.

Queries
HimansHu soni, Mumbai

i am 35 and can save
`20,000 per month. i already
have two fixed deposits
(FDs) of `1 lakh each. should
i make an FD for `20,000
each month to save towards
my retirement?
You have some years to go before
you retire, which means that you
can and very much need to have
exposure to equity to grow your
savings and investments. If you
manage to save `20,000 each month
consistently for the next 25 years,
you would have put aside `60 lakh
towards your retirement. But, if this
sum is invested every month in a
mutual fund, which earns even a
conservative 10 per cent return, you
will amass a corpus of `2.46 crore
over the same time period.
Your FDs do not seem to be the
type to pay out more than 10 per
cent interest and you also should
factor in the impact of inflation and
tax outgo on the interest earned on
the FDs. To make the optimum use Deepti Saxena, Delhi
of your monthly savings, invest this
money in a diversified equity i have recently started working and can invest `5,000
mutual fund(s), which has the per month. should i open a public provident fund (PPF)
potential to earn higher than 10 per account or invest in systematic investment plans (siPs)
cent return in the long run to beat of mutual funds?
inflation and is also tax efficient in It is encouraging to note your eagerness to save and
a manner that the proceeds from invest money. However, there is a fundamental difference
the investments made by you are between a mutual fund SIP and a PPF. The investment
tax free. in a mutual fund is market linked, which means that its
performance is not guaranteed. On the other hand, the
DaviD Paul, Mumbai money deposited in the PPF earns a fixed and guaranteed
i took a unit-linked insurance return each year. The choice of picking one of these will
plan (ulip) and have paid the depend on your age, your ability to take risk and the time
premium for seven years. i frame of your investment. If you are open to putting your
am in need of funds. should money in a PPF, which has a 15-year lock-in, you should
i make partial withdrawal or definitely consider investing through SIP of a diversified
surrender the policy? equity mutual fund. You will not get guaranteed returns but
To get the best advantage under by investing in a well-diversified equity fund, you will be
Ulips, stay invested in the scheme able to gain far more than what the PPF pays over a
through its tenure. If you need some 15-year period. If you are seeking the tax benefit that
money and have no other source, savings in a PPF offer, you can opt for the equity linked
then you could consider partial or savings scheme (ELSS), which is a type of mutual fund
full withdrawal from this plan. As wherein investments qualify for tax deductions under
you have completed five years, the Section 80C, as is the case with savings in the PPF. The
withdrawn amount will not reverse advantage with ELSS is that unlike the PPF, they have a
the benefits of income tax. much shorter lock-in of just three years.

Queries
insurance under which the owner of

the vehicle, whose name appears on
the registration, is insured. So, if you
are transferring the car to your son
and the registration has this change
marked in it, the insurance can be
transferred to him.
Keerthi Das, Delhi

We are parents of two-year-
old twins and wish to invest
towards their education and
marriage. What is the best
investment plan?
You should consider investing in
equities for their ability to beat
inflation and also build wealth over
Mihir Doshi, Pune time since your goal is long-term
in nature. You can do so by making
We are a working couple and invest `5,000 each systematic investments in equities
in hDFC prudence, reliance gold savings, hDFC through a portfolio of equity di-
Midcap Opportunities and Dsp Blackrock top 100 versified mutual funds. The OLM
equity. are we on track? Elite list (featured every quarter) is
You are investing `20,000 a month in four funds. How- just apt for you to get started with.
ever, the only fund that stands out from this pack is the Consider investing in the Beginner
Reliance Gold Fund, as it invests in gold unlike the other portfolio so that you can reap the
three. If you are a conservative investor, it is not bad to benefits of handpicked funds for the
have invested in gold or if you foresee the need for gold in long term. Invest regularly in these
future. Having made a start, you should continue investing funds and you should be able to
in these funds with a three to five-year time frame, as you create the necessary money for your
have not mentioned the objective with this set of funds. twins’ education and marriage.
Returns (%) KulDeep singh, Bengaluru

Fund name
1-year 3-year 5-year i am going abroad on a
HDFC Prudence -1.42 18.20 11.32 posting and want to save a
Reliance Gold Savings -5.44 -9.11 NA substantial portion of my
HDFC Midcap Opportunities 7.31 28.57 17.83 daily allowance. i also want
to bring this money when i
DSP BlackRock Top 100 Equity -3.67 13.27 8.13
Data as on November 24, 2015
get back. Will i need to pay
any tax to bring this money
back to india?
Allowance, as the word suggests, is
supriyO gupta, noida or brothers. Insurers allow only meant to be spent towards meet-
i have an individual health spouse, children and parents to be ing day-to-day expenses. That you
plan and wish to take a fam- covered under the family floater. So, are able to major chunk of it and
ily floater for my parents and you can get your parents covered wish to bring it back with you is
brothers. should i exclude under a floater plan and will need understandable. However, as per
myself from the floater plan separate plans for your brothers. the current tax laws, the amount
or is there a way to combine of allowance that is not spent on
my health plan with the KulDeep Bisht, Dehradun ordinary living expenses would be
family floater? i plan to transfer my car to taxable in India. So, do factor this in
Your intent is laudable but most my son, is the car insurance before bringing in the money with
family floater plans do not allow also transferable? you or remitting it, as you will be
the main insured to add parents Car or motor insurance is a type of taxed on the same.

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News roll
A matter of
dividends
Choosing between
a regular and direct
investment plan
I
f you are a mutual fund inves-
tor who invests with divi-
Varying payouts
dends in mind, you will be in Dividend Direct Regular
for some surprise with the Scheme payout plan plan
varying dividends between regular
(in 2015) Dividend %
and direct plans of the same mutu-
al fund scheme. In fact, the differ- ICICI Pru Banking and
27 February 10.00 30.00
Financial Services
ence between the dividend pay-
outs of the two forms of investing IDFC Premier Equity 02 March 1.54 45.00
in mutual funds is quite stark (See: DSP BlackRock Equity 16 March 85.00 68.00
Varying payouts). For instance, on Birla Sun LIfe Equity 17 March 20.00 38.00
August 28, SBI Small & Midcap
HSBC India Opportunities 17 March 15.00 27.00
Fund paid out 43 per cent dividend
under its direct plan compared to ICICI Pru Value Discovery 20 March 10.00 33.00
36 per cent under the regular plan. JP Morgan India Mid and
20 March 5.00 15.00
In comparison, on August 30, Birla Small Cap
Sun Life Advantage paid out 100 SBI Magnum Balanced 20 March 25.00 10.00
per cent dividend under the direct BOI AXA Tax Advantage 25 March 7.70 20.00
plan and 200 per cent under the
HDFC Balanced 25 March 25.00 20.00
regular plan.
As an investor, you are likely to SBI Magnum Taxgain 27 March 70.00 55.00
wonder which of the two options to SBI Magnum Equity 24 April 70.00 60.00
choose from when investing in IDFC Premier Equity 06 May 43.46 0.00
mutual funds. There are various
SBI FMCG 29 May 120.00 100.00
theories going around about the
difference in dividend payouts DWS Investment
25 June 70.00 0.00
being a ploy by the asset manage- Opportunity
ment companies (AMCs) to make Reliance Quant Plus 25 June 47.00 42.00
direct plans less attractive, if the SBI IT 26June 70.00 60.00
regular payout is more or vice SBI Small & Midcap 28 August 43.00 36.00
versa. Going by the difference in
dividend payouts, it is clear that Birla Sun LIfe Advantage 31 August 100.00 200.00
this is an industry-wide issue as ICICI Pru Dynamic 30 October 9.00 18.50
AMCs are supposed to calculate * Highlighted funds indicate where direct plans have a greater dividend than regular plans
the dividends for each of their

plans based on the distributable Street talk
surplus. A plan’s distributable
surplus is computed as its net asset
value minus its face value, unrea-
lised gains and accumulated unit
Cutting out ambiguities
L
premium reserve (UPR). The UPR ack of financial literacy and awareness is often the cause
is determined after apportioning attributed to the proliferation of Ponzi schemes. Every few years,
realised and unrealised gains in one comes across Ponzi schemes or collective investment
the ratio of the respective assets schemes (CIS) that get blown out of proportion before the state
under management. government or the market regulator SEBI steps in. Other than low
As observed, the dividend payout literacy, one major cause for the popularity of such schemes is the
in case of some regular plans is simplicity with which these are constructed; so much so even the well
more than the corresponding educated get carried away.
direct plans because the regular In order to curb the wild ways of functioning of CIS, the Parliamentary
plans have been around for a long Standing Committee on Finance could propose a common regulator for
time now and also have a large money pooling schemes. This will clear the ambiguity that currently
corpus, resulting in the higher exists. (See: CIS Muddle).
dividend payout. The committee headed by former union minister Veerappa Moily noted
Direct plans, in comparison, have that the check on Ponzi schemes came under different regulatory
been around only since January bodies—SEBI, RBI, the Ministry of Corporate Affairs, and state
2013 and do not have huge realised governments. This has only meant that there is no clarity on whom to
gains to distribute dividends approach in a crisis.
among investors. In June this year, SEBI had informed a
Yet, some of the direct plans have Parliamentary committee that, “To effectively deal
been able to pay a higher dividend with the menace of unauthorised and illegal
than the corresponding regular money mobilisation at an early stage, many state
plans because they have received governments have enacted state laws. For
more inflows than the regular enactment of a Protection of Interest
plans and hence have higher rea- Depositors’ Act by all states and union
lised gains owing to a higher AUM. territories, (we have) written to the Ministry
Effectively, if a direct plan has paid of Finance.”
a higher dividend than a regular Credit has to be given to SEBI, which has
plan, it is indicative that such a time and again spoken about the perils
fund has seen more inflows of Ponzi schemes and taken several
through the direct mode. schemes to task.
As an investor, ideally you should SEBI has also initiated several
look for the growth plan instead of awareness initiatives and taken steps
dividend plans as you can redeem to check emergence of such schemes. Accordingly, SEBI made clear to
the units under the growth plan as the committee in its statement: “It is to be clarified that unauthorised
and when necessary than be money pooling are falling under various regulators. Upon completion of
swayed by the dividends paid by examination of applicability of the Sebi Act, (we have) referred 1,438
mutual fund schemes. After all, cases to various agencies, including state governments.” Based on these
the dividend paid is from your inputs, the Parliamentary Standing Committee on Finance is all set to
investment and not through any pass the mandate for a single regulator to focus on Ponzi schemes.
other mode. If you are the kind of
investor who can handle invest- CIS Muddle
ments on your own, the direct
Scheme Regulator
route is a wee bit more convenient
than the regular plan and that Gold schemes MCA/RBI
alone should be the driver for you Nidhi or Mutual benefit RBI
to select the direct plan over regu- Ponzi schemes State government
lar plan. If you cannot handle
Multi-level marketing State government
investments on your own, you
Schemes by cooperative societies State government
should stick to regular plans.

News roll
‘Batua’ app Street talk

If SBI Buddy was for smartphones,
the next in line is ‘Batua’, a mobile
wallet app, which will work even Ease of doing business in
India improves
with feature phones. Feature
phones can access the Internet, and
store and play music but lack the
advanced functionality of a smart-
phone. With this offering, the bank
hopes to reach out to more mobile
phone users and into geographical
areas where smartphones are not
as prevalent.
Batua will be used to make utility
payments, transfer funds and buy
air tickets, among others things,
and will be available in 13 languag-
es, making it widely appealing. The
app can be downloaded from
sbi.co.in on the user’s desktop and
then loaded on to their phone. With
this feature, customers using Batua
will be able to load, pay and receive
A
ccording to a World Bank report, it takes 12 procedures and 29
days to start a business in India compared to an average of 15.7
days in South East Asia. Among 189 countries, India holds the
130th rank, up four places from last year’s rankings. India’s rank
in 2015 initially stood at 142 and was revised to 134. In comparison, China
has attained 84th rank.
The overall rank is based on 10 factors, which include starting a
business, getting construction permits, electricity and credit, registering
a property, paying taxes and enforcing contracts, among others. While
ranking in terms of starting a business, getting electricity and
money. Also on the anvil is a basic construction permits have improved, India has slipped 6 places when it
version of Batua, which will be comes to getting credit. Most of the other factors have seen no change.
operational on basic phones that do The improvements have been a result of the recent regulatory reforms
not offer Internet access and will in India. In May 2015, the government adopted amendments to the
not entail downloading any app. Companies Act that eliminated the minimum capital requirement. Now
Indian entrepreneurs no longer need to deposit `1,00,000, equivalent to
Variety in NFOs 111 per cent of income per capita, in order to start a limited liability
After a considerable gap, there is a company. The amendments also ended the requirement to obtain a
slew of new funds awaiting launch. certificate to commence business operations, saving business founders
DHFL Pramerica Tax Savings, an unnecessary step and five days.
Peerless Long Term Advantage and Improvements are also being initiated in other areas. For example, to
Mirae Asset Tax Saver are three make dealing with construction permits easier, a single-window system
such schemes while Axis AMC is for processing building permit applications is being started in Mumbai
launching a fund scheme focusing with the promise of greatly reducing the associated bureaucratic burden
on investments for children. once fully implemented. Online systems for filing and paying taxes are
Peerless also launched its mid-cap being further improved to simplify tax compliance.
fund and Tata AMC announced five This momentum, if sustained over the next few years, will significantly
new schemes—Tata Banking and benefit Indian entrepreneurs and, in turn, lead to job creation and
Financial Services Fund, Tata India economic growth.

News roll
Consumer Fund, Tata Digital India
Seeding ideas Fund, Tata India Pharma &

Healthcare Fund, and Tata
Resources & Energy Fund.
Further, Tata is offering these
funds under its ‘Own a Piece of
India’ campaign with the inclusion
of its existing Tata Infrastructure
fund. With Own a Piece of India,
investors can customise their
choice by combining exposure to

different segments with ‘One
Application-One Cheque’. Some
other fund houses are looking to
launch ETFs like LIC Nomura’s
Sensex traded ETF, even as
Sundaram Mutual extends its Micro
Cap Series-X. For SIP investors, the
choice has just got wider.
Benefit illustration
The Insurance Regulatory and
In our endeavour to take financial education to college students, Outlook Development Authority of India
Money and Birla Sun Life AMC teamed up to visit Rungta College of (IRDAI) has issued a directive
Engineering and Technology in Bhilai on November 4, 2015. Over two stating that all insurance products
hours, students from different engineering streams attended the should provide the prospective
engaging session on how they could manage their finances once they got policyholder a customised benefit
into employment in the near future. illustration, depicting the guaran-
The sessions were interactive with some faculty also joining in to revisit teed and non-guaranteed benefits
the basics of savings and investments. The objective of the session was at gross investment returns of 4 per
to spread the need for financial awareness at an early stage among cent and 8 per cent respectively.
students so that they can be more hands-on with their finances and not The directive came into effect on
be encumbered by challenges at workplaces when starting their careers. December 1, 2015 and is a result of
The sessions were held by K.S. Rao, head-investor education and insurers not conforming to stipulat-
distribution development, Birla Sun Life AMC, and Narayan ed return. Insurers have been asked
Krishnamurthy, editor, Outlook Money, on the working of the stock to place the illustration on the same
markets and how the students could start investing once they got their page as the advertisement.
first pay cheque. If you wish to have a session in your campus, write to
nk@outlookindia.com. By Aakar Rastogi, Anagh Pal, Himali
Patel and Khushboo Rajput

Expert Speak
G.V. NaGeSwara rao

Managing Director and CEO, NSDL
Going paperless
The National Securities Depository (NSDL)
has several path-breaking technology-
backed initiatives to its credit. G.V.
Nageswara Rao, MD and CEO, talks about
the latest developments and new initiatives
x What trends are you seeing ments, resulting in several students insight into their portfolio across
with demat accounts? opening demat accounts and taking various asset classes. It enables
The pace of demat account up investing. them to manage their portfolio
growth is picking up and the effectively through better deci-
majority of accounts opened in x What is the benefit of CAS? sion making, simplified monitor-
the recent months belong to new At present, investors find it difficult ing and rich analysis. Investors
investors. As a result, there has to have a complete picture of their can get more information about
been a spurt in online trading; portfolio. Most investors do not NSDL CAS by visiting https://
we are able to see this based on readily know the total value of their nsdlcas.nsdl.com. In fact, there
the activity that is reflected in the portfolio or its composition. They have been instances where
consolidated account statement often get different advice from several investors have written
(CAS) that we send out. The different entities. Unless an investor to us stating that NSDL CAS has
transaction volumes have also is well-organised and keeps proper helped them realise a lot of their
witnesses an increase. Overall, it records, he cannot easily compile a holdings that they had other-
is a positive sign for us from busi- list of all his investments. wise forgotten about. Having all
ness point of view. NSDL has introduced the investment holdings in a single
From time-to-time, several consolidated account statement account helps investors have
investors who still have physi- (NSDL CAS), which is a single state- better control over the way their
cal shares with them realise that ment of all investments one makes investments fare.
they cannot sell their holdings in the securities market, be it equity
and shift these to demat account. shares, preference shares, mutual x When will the payment
Such inactive investors are few, funds, bonds, debentures, secu- banking activity start?
but they all need to move to ritised instruments, government We are excited about this space,
demat form for its benefits and securities (other than those held in and our strength and track record
convenience. subsidiary general ledger or SGL), of handling a large volume of
On our part, our initiative called commercial papers or certificates of transactions will differentiate us.
Market Eaklavya to lure young deposit. It offers unparalleled conve- We are also the cheapest and the
investors at colleges is proving to nience to investors in keeping track largest depository in the world.
be encouraging. We are educat- of their portfolio. We charge only `4.50 on one
ing them regarding equity invest- NSDL CAS provides investors an side for a transaction. So, we will
be looking at this aspect of our
Having all investment holdings in a single experience in addressing the is-
account helps investors have better control sue of currency handling for large
organisations. We will enter this
over the way their investments fare. space in 2016.

Expert Speak
Chandresh nIgam
Managing Director and CEO, Axis Mutual Fund
‘Investors need a plan

aligned to their goals’
Ordinary investors are more receptive to
funds that lay out a well-defined strategy
and objective, says Chandresh Nigam,
managing director and CEO, Axis Mutual
Fund, in a conversation with Vivek Malik
x Tell us about Axis Mutual veyed said that their biggest concern for plans, which are aligned with
Fund’s new child gift fund and is their children’s education, going their life goals and don’t mind
the reasons behind its launch. forward. We want to help them plan going for a long lock-in period.
We had been thinking about towards their biggest concern with We are looking at a scenario
launching a child fund for a long this product. To give you an example where the non-lock-in option re-
time and had filed our applica- of insurance plans, where there has mains, but majority of the money
tion with the regulator sometime been a clear cut objective such as flows into the lock-in option.
back with a view to launch a insuring a girl child or a targeted
product that is clear in its objec- group, such policies remain in force x Speaking of other funds from
tive rather than classifying it as for a much longer time. Despite all your bouquet, how do you view
equity, hybrid or balanced fund. the efforts over the years, the pen- the performance of Axis Triple
Most investors don’t understand etration of mutual funds remains at Advantage fund?
this terminology and probably a lowly 3 per cent. It’s high time we If you look at how one of the
don’t even care for such a clas- engaged the investor in a manner so underlined asset classes of the
sification. They are not interested that his investments become more fund—gold—has gone down
in knowing the level of alloca- than just plain investments. over the last two years, it is par
tion to large-caps or mid-caps. for course considering the ups
All the investor is asking for is x What are the key features and and downs different asset classes
a well-defined mandate for his the lock-in period of this fund? go through over market cycles.
investments. We want to change Investments in this fund can be Besides, I believe that around 10
this jargonised language and tell made only in the name of a minor per cent of investors’ portfolio
them what this fund is actually child (aged less than 18). There is should have exposure to gold.
meant for. We wanted to talk to also a feature wherein the investor This has more to do with hedging
the investors in a language that can opt for a lock-in, which will be your investment portfolio. The
they understand and link it to in force till the child turns 18. To our fund remains a great product;
their goals, dreams and aspira- surprise, most investors are opting yes, we have been a little disap-
tions. We have done a survey for a lock-in and that proves what I pointed when it comes to the
wherein 83 per cent of those sur- just said: that investors are looking overall returns but with regard
to managing it, we have done
Most investors don’t care for different fund it brilliantly. The product idea
classifications. All they want is a well- is still relevant and who knows,
gold might see a turnaround in
defined mandate for their investments. the coming months.

Investment Destination
sites, making it a perfect destination

for religious tourism. Panchavati,
Ramkund, Muktidham Temple,
Kalaram Temple, Sundarnarayan
Temple, Trimbakeshwar and
Someshwar Temple are some of the
few places that transcend oneself
to spiritual tranquillity. Nashik is
also close to Shirdi, one of the big-
gest pilgrimages in India. Shirdi Sai
Temple of Shri Sai Baba is about 80
km away by road.
Industrial cocoon
Nashik has three well-developed
industrial estates at Satpur, Ambad
and Sinnar. The prominent indus-
trial houses situated in Nashik and
its nearby areas include ABB India,
Mahindra and Mahindra, Gabriel,
Glaxo SmithKline, LG Electronics,
Samsonite and Siemens.
Cottage industry has thrived in
Malegaon, which is famous for
its handlooms and power looms.
Carpet weaving in remote areas
like Surgana Block has added to the
growth of this city.
Strong development and indus-
trialisation over the years has led
to growth in migrant population in
these industrial pockets, spurring
the demand for real estate. While
Nashik hasn’t fully grown into a
metropolis, it has all the necessary
elements like regular water supply,
good sanitation facilities, and intra
Hive of progress
and inter-city commuting facili-
ties, evincing the interest from both
investors and realty buyers alike.
The appetite of realty players is
Nashik is inducing realty interest with increasing, with various builders
some promising industrial projects having multiple projects in prime
locations. One such posh locality is
Gangapur road that is situated close
S
ituated 200 km away from Council), carrying the beads of to the Gujarat highway. Thakkers
Mumbai, Nashik nestles industry and pilgrims together and Developers, Archit Group, Karda
comfortably in the lap of sculpting a personality of its own. Constructions, Samraat Group, and
picturesque boulevards, Brewing a sense of serenity and Lalwani Group have ongoing and
nurturing in its pleasant climate. sanctity, Nashik happens to be one upcoming residential projects in
Embodied in the fervour of mythol- of the four cities where the Kumbh the area, with prices ranging from
ogy and culture, it has grown into Mela is held every 12 years. Situated `3,598 to `5,296 per sq. ft. The realty
‘India’s most promising city’ (as on the banks of river Godavari, footprint is also picking up pace in
awarded by the First Smart Cities Nashik is home to various sacred Takli road, the area surrounding

the Mumbai-Agra highway, which
is only 15 km from the Ozar airport.
Various projects are also coming up
Education Literacy on the Nashik road, with prevailing
rates in the range of `2,840 to `4,095
per sq. ft. Other prominent areas are
2 3 6 82.31 % Indira Nagar (`2,779-`4,011 per sq.

Average literacy rate ft) and Panchwati (`2,545-`3,666
State Engineering Prominent per sq. ft).
universities colleges schools
Investments galore
88.17 % 76.08 % Nashik is abuzz with investment
Male Female opportunities as more and more
onshore and offshore industrial-
Booming mega-city ists are queuing up to invest here.

FDI investment is pouring in and a
2,000 acre China industrial park is
Investments are pouring in for Nashik and the being built. The proposed park will
city is all set to become the next industrial hub have 20 to 30 non-polluting Chinese
units and is expected to employ
close to 3,000 people.
The central government’s project
Ram Kund of Delhi Mumbai Industrial Cor-
ridor (DMIC) includes Nashik’s
Satpur Godavari Igatpuri and Sinnar areas, where
NH3
Population nearly 20,000 hectares of land de-
Nashik velopment will be done. One of the
five mega industrial cities planned
along DMIC will also come up here.
These mega projects that are in
Male Female the pipeline would take Nashik
31.5 lakh 29.5 lakh to new heights of development.
What works in Nashik’s favour is its
Connectivity Total: 61.07 lakh
Source: Figures as per 2011 Census data
proximity to Pune and Mumbai. The
industrial and infrastructure devel-
Rail: It is well connected with opment has picked up pace and Na-
the major cities in India and shik has been the hotbed of growth,
has 67 trains to Mumbai contributing a significant chunk in
Maharashtra’s development.
Road: Nashik is around 160 km Development While its pilgrimages and cul-
from Pune and Mumbai, and about ture hold its fort, the city, with its
80 km from Shirdi.
indicators fast-emerging investments from all
It is also strategically located over the world, is inducing massive
on the Mumbai-Agra ■ A first of its kind high-end China realty interest and turning itself into
National Highway industrial park spread across 2,000 acres country’s next industrial hub.
is being set up.
Air: The state government, along ■ Shortlisted by HAL as the base for its
with Hindustan Aeronautics Lim- `23,000 crore manufacturing plant for Direct Logo
ited (HAL) has developed the Sukhoi jets for the Indian Air Force.
Ozar airport near Nashik to ■ A mega industrial city is being devel-
reduce congestion at Mumbai oped where Japanese companies are IFAN (Independent Financial
airport. An international air- expected to invest `2,000 crore. Associates Network) is a web-
port is also being set up in Shirdi. ■ MIDC and a private group are setting enabled distribution platform of
Reverse Logo
up the first multi-product SEZ. IFAN Finserv Pvt. Ltd. (ifan.co.in)

B&W Logo
Expert Speak
Equity route to
your destination Nilesh Shah, MD,
Kotak Mahindra Asset
Management Company Ltd.
Equity investors should let experts manage their money

and stay for the long haul
I
have been often asked this in various forms, “How
do I make money from the equity market?” And
my answer, in varying lengths, is the same: “By
letting experts manage your money, by seeing
equities as a thing for buying a piece (share) of
business, and by staying with it for long.”
Somehow, for some reason or the other, we don’t
seem to bring in our experience and insight into equity
investment, which we otherwise practise so indiffer-
ently in our daily lives. To give you an example, let me
illustrate our train travelling habits and contrast this
with our investing habits.
If and when we travel by train, especially if we are trav-
elling long distances with our family, our usual modus
operandi is: we fix our destination, we fix our travel signal, we do not shrug and leave the train. We check
dates, we check the train and the timetables, we pre- and enquire but we wait for we know that the train will
book the tickets, we plan the to and fro from home and finally take us to our destination. But it’s not the same
station, and we also plan the routine a day before travel. with equity. If the market has run-up too fast, we want
Contrast this with our equity investment. Most of us to book profits. If the market has declined, we want to
don’t know why we are investing, by when do we want stop our SIPs and investment plans. If the market is not
that investment back, what is the investment schedule, moving anywhere, we want to switch funds.
what is the medium through which to take that invest- We must know and appreciate that equity is a long-
ment, and how to structure our payments around it. term performer, so these short-term red signals and pull
Most of us plan in detail for a two-three week long backs are in fact buying times and not the time to exit
travel. However, we don’t plan our investments for our and run. But we exactly do that with no regard for the
post-retirement journey. long-term goal of reaching our financial destination.
There is another variant. If we dislike train halts, stop-
we must have: pages, stations, different quality of trains and a one-off
• A plan for our investments accident, we do not completely abandon travelling by
• An investment process trains. We know that trains are far safer and more reliable
• An investment objective than most other means of commuting for long journeys.
Our investment objectives must correspond with the However, we do not extend the same courtesy to equi-
objective of the equity fund we want to invest in. ties. Equity volatility completely dissuades many inves-
Many of us are willing to pay a premium to the travel tors who choose a slow moving vehicle of fixed income
agent to arrange these travels for us. On the other hand, investment. This, while knowing fully well that equities
many of us would be hard-pressed if we were to give will outpace and outperform fixed income investment
even a nominal fee for good investment advice to the in the long run.
financial advisor. And the contrast doesn’t end here. So I will conclude with the same assertion: let experts
Were our train to get delayed, travel slow due to bad manage your money, see equities as a thing for buying a
weather, or stop in middle of nowhere due to a red piece (share) of business and stay with it for long.

Stock Pick
GRUH Finance Why buy

x CMP: 250.65 x PE: 41.29 n Good track record of financial and
operating performance
*As on 24 November
n High potential of scalability due to
massive opportunity in the affordable
housing segment
Niche focus pays off n Strong parentage of HDFC along with

best-in-class return ratios
n Excellent asset quality due to stringent
Huge demand is foreseen for EWS and LIG credit monitoring norms
segments offering ample opportunity for Watch out for

GRUH Finance to grow, says Himali Patel n Interest rate and liquidity risk
1000 Financials
Gruh Finance
BSE Sensex Net Sales (` crore) PAT (` crore)
587.69
800 FY15 1,060.31 FY15 203.80
FY14 845.69 FY14 176.96

600
FY13 650.44 FY13 145.88
400 OP (` crore) EPS (`)

FY15 979.86 FY15 8.17
146.80
200 9.82
FY14 790.54 FY14
FY13 603.20 FY13 5.61

0
4 Jan 2010 `100 invested in GRUH Finance in January 2010 has become 24 Nov 2015 OP: Operating profit; PAT: Profit after tax
`588 now as opposed to `147 if invested in the Sensex Graphics: Praveen Kumar .G EPS: Earnings per share
E
stablished in 1986 as a sub- loans are given in rural areas for NPAs as on September 30, 2015,
sidiary of HDFC, GRUH select categories such as backward stand at `19.62 crore or 0.20 per cent
Finance is a leading hous- classes, minority community, of the loan book.
ing finance company women owners and families with
(HFC) and is recognised by the annual income of less than `2 lakh. Expanding opportunity
National Housing Bank (NHB). It GRUH has a network of 171 retail Given the strong demand and short-
provides loans for purchase, con- offices across eight states. age of housing in urban and rural
struction and extension of homes. areas, players like GRUH Finance
GRUH focuses on providing home Strong financial have ample opportunities to grow.
loans to families in the self- performance Most of the shortage is seen in the
employed category where formal GRUH’s net sales and net profit economically weaker sections
income proofs are not easily avail- clocked a compounded annual (EWSs) and low income groups
able. Apart from extending home growth rate (CAGR) of 27.75 per cent (LIGs). In the ‘Housing for All by
loans, GRUH offers loans for pur- and 24.20 per cent, respectively, over 2022’ scheme, the centre is trying to
chase and construction of non- FY 2010-15. The CAGR loan book bridge the affordability gap. To make
residential properties (NRP) and growth was 29 per cent over it more inclusive, the centre has also
also offers mortgage loans against FY 2010-15. It was made possible raised the income ceiling for EWSs
existing residential and commercial due to GRUH’s presence in the and LIGs. The company’s scrip has
properties. Developer loans, too, are affordable housing segment in rural given around 18 per cent annual
offered but on a selective basis. areas, which provides pricing power return since January 2010. Those
GRUH also offers home loans on the asset side along with cost of looking to invest in the stock can do
under the Rural Housing Fund funding at par with large HFCs, and so with a long-term view.
(RHF) scheme of NHB wherein impeccable asset quality. The net himali@outlookindia.com

Digital
Dialogues
http://events.outlookmoney.com
Event partners Industry partner
December 16, 2015 India Habitat Centre, New Delhi
Digital Transformation
Driving business innovation with inclusive growth
A platform for comprehensive discussions among policymakers, thought leaders and
senior industry professionals on holistic integration of technology for driving
business leadership through inclusive growth
Special address by
Mr Hemant G. Contractor, Chairman, Pension Fund Regulatory and Development Authority (PFRDA)
Mr Ram Sewak Sharma, Chairman, Telecom Regulatory Authority of India (TRAI)*
Session I: Product Innovation – Digital channels are not just complementary anymore
Dr A.K. Saxena, CMD, Oriental Insurance Company Ltd
Mr Sundeep Sikka, President and CEO, Reliance Capital Asset Management Ltd
Mr Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance Company Ltd
Mr Tarun Chugh, MD and CEO, PNB Metlife Insurance Company Ltd
Session II: Technology – Transforming distribution

Mr Abhishake Mathur, Head-Investment Advisory Services, ICICI Securities Ltd
Mr G.V. Nageswara Rao, MD and CEO, National Securities Depository Ltd (NSDL)
Mr Sudipto Roy, MD, Principal Retirement Advisors Pvt. Ltd
Mr V. Ramesh, MD and CEO, MF Utilities India Pvt. Ltd
And several other industry stalwarts...
For more details contact: Prashant Kapoor; prashant@outlookindia.com; M: 9320405610

To register, visit http://events.outlookmoney.com
Avail an early bird discounted price of `2,000 for registrations done before
December 7, 2015 upon using the code EARLYBIRD
*To be confirmed
Insurance Made Easy
Reassessing life insurance

Life insurance needs to keep pace with your life stages, it should never
be a one-time call
taking on liabilities. Make continue a policy so that

sure you increase your the spouse would be
life insurance cover when financially comfortable in
you are taking a loan for your absence.
a house or business. A
proportionate increase in Career shifts: Every
life cover for the period of time you have a sizeable
servicing the liability will increase in your income,
see you through. you should check your
life insurance needs. Most
Retirement: Ideally, when often, rising salaries also
you retire you have no fi- indicate rising expenses,
nancial obligation, which which will continue even
means you should not in your absence. To make
have any life insurance sure your financial depen-
in this phase. However, dents are taken care of,
L
ife insurance up significantly. Basically, if you have a spouse who review your life insurance
is a financial every time your finan- may need money apart every time you have a
instrument that cial responsibilities and from what you have saved career shift.
can make sure liabilities increase, you for your life in retirement, olmdesk@outlookindia.com
your family does not bear need to review your life
financial shocks in your insurance needs. Here are
absence. At every stage in some instances when you
your life, life insurance must reconsider your ex- thing that matters
is to plan for every
needs will change, which isting life insurance cover
stage of your life
means it cannot be a and act accordingly: One
one-time decision to buy

insurance. You cannot Life stage: Significant
adopt a ‘fill it, shut it, life changes like birth,
forget it’ attitude. You marriage, death or divorce
need to review your life call for a recheck of your
insurance needs regularly life insurance needs. At
to ensure that you are each of these instances,
adequately insured and there is a financial impact Start
your financial dependents concerning you and your Plan for the twists and turns in life with...
are well covered for. dependents. So, when a
Bajaj Allianz Life Insurance Solutions
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Protection | Savings | ULIPs | Retirement | Child Plans | Riders
uate your life insurance increase your insurance
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For instance, you should reduce it.
reconsider life insurance IRDAI clarifies to public that -
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS
�IRDAI or its officials do not involve in activities li�e sale of any �ind of insurance or financial products nor invest premiums.
Liabilities: While buying a

�IRDAI does not announce any bonus. Public receiving such phone calls are re�uested to lodge a police complaint along with details of phone call, number.
when you marry, have a Office Address: G.E. Plaza, Airport Road, Yerawada, Pune - 411006. IRDAI Reg No.: 116., BALIC CIN : U66010PN2001PLC015959, Mail us : customercare@bajajallianz.co.in,
Visit: www.bajajallianz.com, Call on : Toll free no. 1800 209 7272, Fax No: 02066026789, Insurance is the subject matter of solicitation. The Logo of Bajaj Allianz Life Insurance
child, buy a home or even house is creating an asset, Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its �Bajaj� Logo and Allianz SE to use its �Allianz� logo. By submitting your contact details or responding
to Bajaj Allianz Life Insurance Co. Ltd., with an SMS or Missed Call, you authorize Bajaj Allianz Life Insurance Co. Ltd. and/or its authorized Service Providers to verify the above
information and/or contact you to assist you with the purchase and/or servicing.
BJAZ-PR-0291/20-Nov-15
when your income goes doing so with a loan is

Cover
Cover Story
Story
Tax P L A N
Tax planning is not tax evasion. It
is not blindly putting your money
into the first tax-saving instrument
that you can lay your hands on.
It involves sensible planning of the
various sources of your income
and investments
By: Anagh Pal, Himali Patel,

Khushboo Rajput, Kritika Srivastava and Shipra Sharma
N N I N G 2015-16
Y
ou are a taxpayer and you are the chosen one. In a nation of 125 crore
people, you fall in the elite 3.2 per cent of the population or 4 crore
people who file their tax returns. And, if you earn more than `5 lakh
a year, you fall in the exclusive category, as about 75 per cent of those
who pay taxes have reported their income to be less than `5 lakh. This
story is for all taxpayers who, despite the odds, have an opportunity to
legally minimise their tax liabilities.
Yet, most taxpayers do not treat their contribution seriously. Tax planning is seen more
as a chore than a way to not just save taxes, but also make the most of it. At the highest
tax bracket of 30 per cent, the most popular tax savings under Section 80C of the Income
Tax Act help you save `45,000 on investments of `1.5 lakh. However, under the 10 per
cent tax bracket, the savings work to `15,000 only. Going by our interaction with those in
the lower tax bracket, there is hardly any money left with them after their essential living
expenses to consider setting aside any money towards tax savings.
As you will read in the following pages, tax planning is not difficult. It is, in fact, easy
as long as you do not complicate it. It can be practiced by everyone and with very little
time commitment as long as you take it seriously, something that you should. You will
also realise that by aligning a lot of your financial goals, including essential costs on
your child’s education and repayment of home loan, you will not only optimise your tax
outgo but will also be closer to achieving your financial goals. Here is hoping you save
tax wisely this year.
Cover Story
Get
Tax Smart
Make the best of the available options that help you
optimise your taxes
A
Tax savings s yet another year comes close to an
end, for most of us who are salaried,
the tax-saving avenues beyond the
At the highest tax mandatory provident fund deduction
bracket, you can optimise seems far away and the last thing on
your tax outgo even with one’s mind. Even though the tax-saving season
your stock market gains
or gains from sale of 30% will come to an end in March 2016, now is still a
good time to take a look at your financials and
property and any interest fine-tune your tax-planning strategy. We explore
income a few last-quarter tax-saving options, which will
help you save as much of your hard-earned money
as possible.
There are several tax-saving opportunities that exist for
taxpayers from standard deduction towards house rent
allowance (HRA) and travel expenses by way of convey-
You have the money to
ance allowance to medical reimbursements. However,
explore options within the
the bulk of action is visible within the ubiquitous
Section 80C menu like
home loan repayment and 20% Section 80C under which you can save and invest
money to claim income tax deductions. Says Mumbai-
contribution towards NPS
based Purnima Diwakar: “I go with savings in LIC,
which I trust and find easy to understand compared
to other tax-saving options that are available.” Broadly,
within the range of various tax-savings options under
Section 80C, the ones that are tilted towards savings
and investments can be divided into those that have
You can optimise your tax market-linked returns and those that have fixed returns.
liability through:
Problem of Plenty
Medical expenditure The choice under Section 80C includes your contribu-
Staying in a rented tion towards provident fund (PF), which is the monthly
accommodation amount deducted from your salary as your contribution
Travel expenses
Housing loan interest
10% towards the Employees Provident Fund Scheme or
Recognised Provident Fund. There is also the invest-
Other allowances ment in public provident fund (PPF), where the account
How much to invest to matures in 15 years and one has to save at least `500
save tax? each year. You can also purchase National Savings Cer-
Change of job tificates (NSCs) from the designated post offices.

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Cover Story
PurniMa Diwakar, 28, anD

avinaSh kuMar, 29 Mumbai
Although the couple saves and invests beyond the
mandatory `1.5 lakh each towards tax savings under
Section 80C, they do not have any equity investments.
We find LIC to be extremely

trustworthy for tax saving, with the
rest mostly going towards what we can
claim from the home loan repayment.
This year, also included is deposits into

Sukanya Samriddhi account for a girl child.
The amount deposited earns an interest of
9.2 per cent, and the interest is fully exempt
from tax. A minimum of `1,000 must be
deposited in a year. Receipts on maturity
from the account are tax-free.
Among the market-linked products to
claim tax benefits are unit linked insurance
plans (Ulips). You can also invest in equity
linked savings scheme (ELSS), which is a
type of equity mutual fund in which invest-
ments qualify for tax deduction under
Section 80C. These funds have a three-year
lock-in period. You can also contribute to
notified pension fund offered by mutual
funds and National Pension System (NPS).
Photo: soumik kar

Taxpayer concerns
Irrespective of one’s age or risk profile, the
In fact, premiums paid towards a life propensity amongst most taxpayers is to
insurance policy qualify for deduction un- explore the fixed-return option. The bias
der Section 80C, as specified in the policy. towards fixed-return savings is two
You can also claim your children’s tuition pronged—most taxpayers find these less
fee paid to any school, college, university risky and the assured returns seem far easy
or other educational institutions situated to accept than market-linked returns. “I
within India (for the purpose of full-time had a PPF account that matured and trust
education of any two children), including the straightforward NSC-type option for its
payments for play school, pre-nursery and simplicity and ease of handling,” stresses
nursery. You can also deposit money into 54-year-old, Delhi-based advocate
five-year deposit schemes in post offices Meenakshi Singh. She falls in the 20 per
`46,350
Maximum tax
and banks as well as Senior Citizens Saving
Scheme, if you are in that age group.
cent tax bracket and recounts her not-so-
good experience of investing in an ELSS.
Then there is the principal repayment on The lack of confidence in exploring
savings under loan for purchase of house property— equity-oriented tax savings is mostly due
Section 80C
payments of instalments or part payments to lack of knowledge as many wrongly
or repayment of loan taken for buying or think investments in ELSS reflect the stock
constructing residential property. market movements. “I have savings in LIC,

Cover Story
Mohit SrivaStava,
22 Bengaluru
Despite a head start, he has
focused more on the usual PPF
and life insurance modes to save
taxes, which deprives him of the
opportunity to do better with his
money in the long run.
I have plans to invest

in ELSS this time and
understand the benefits
of listing out financial
goals and trying to match
them with tax savings.
Photo: RajkumaR. S.
post office schemes and insurance, which instance, if `1.5 lakh is invested each year
exceed the `1.5 lakh limit,” says 26-year-old as part of tax savings for 30 years, at 9 per
Ghaziabad-based Parijat Pande. Though he cent annual returns, which is marginally
is thinking of putting money in the NPS, higher than what the fixed-return tax-saving
it is more to do with the additional tax instruments pay, the cumulative `45 lakh
deduction of up to `50,000 that one can invested over this time will be worth `2.28
claim by putting money in this long-term crore. However, if the same amount was
retirement savings plan. put in an equity-oriented tax saver, earn-
Another bachelor, like Pande, has no ing even a marginal 3 per cent more at 12
equity exposure with his tax savings. “I am per cent, the wealth it would create works
comfortable with insurance and PPF, and to over `4 crore, not to forget the tax-saving
my company covers for medical insurance, benefits in this period. There are several
which means I don’t need to put money in a advantages of investing in the ELSS to save
`16,995
Maximum savings
health policy to save taxes,” says Bengaluru-
based 22-year-old Mohit Srivastava. Both
these youngsters do not realise the potential
tax and build wealth, which you can read in
detail on page 56 (Read: Advantage ELSS).
“The home loan repayment takes care
under Section 80D benefits that an equity-linked tax-saving of most of the tax savings other than the
option can offer to their finances in the long mandatory insurance and PF contribution,”
run besides helping them optimise their quips 29-year-old Avinash Kumar, Purni-
tax liabilities in every financial year. For ma’s husband.

Cover Story
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Tax-free 8.5% or 8.8% Tax on interest Tax benefits are Dividends and
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Benefiting from taxes

Vaibhav Sankla
T
here are the usual standard tax-saving options Director, H&R Block India
available for every taxpayer and then there are certain amount less than `5,000. These vouchers are tax-free. A
benefits that are tax-efficient, being offered by number of companies also offer meal vouchers of `2,400 per
employers to their employees. Many of these are rather month. This too is exempt from tax.
uncommon and some of them are even considered grey. Professional pursuits allowance: Allowances paid for
Based on my experience, I am sharing the list of options that encouraging academic, research and training pursuits in
you can check with your employer to make your salary more educational and research institutes are exempt from tax, and
tax-efficient. some employers offer an option to their
Uniform allowance: Tax laws provide employees to receive a part of their salary
for tax benefits on ‘uniform allowance’. In in the form of such allowance.
line with the changing times, some com- Contribution to NPS account: An
panies which require their employees to increasing number of companies have
be dressed in strict formal attire, provide started providing an option to their em-
their employees an ‘attire allowance’. This ployees to receive a part of their salary in
allowance is considered tax-free to the the form of company’s contribution to em-
extent the employees submit the bills for purchase of such ployees’ NPS account. These contributions, up to 10 per cent
formal attire. of the employee’s basic salary, are exempt from tax. Typically,
Health club allowance: Some companies offer health the high-salary earners prefer to opt for this.
club allowance to their employees. This is considered as tax Car lease and reimbursement of car-related expenses:
exempt to the extent that health club membership bills are Another tax-saving salary component, which not many
submitted by the employees. are aware of, is in the form of provision of company-leased
Reimbursement of telephone expenses: Reimburse- car and reimbursement of car running expenses, including
ment of telephone expenses, which is considered a tax-free driver’s salary. Note that if the car is owned by the employee
perquisite, is also gaining popularity especially since many then the reimbursement of car running expenses hardly
employers expect their employees to be available beyond fetches any additional tax benefits. The tax savings for em-
office hours. ployees opting to purchase their new car through this scheme
Gift vouchers: Some companies offer their employees to are significant and, therefore, employees find such schemes
receive a part of their salary by way of gift vouchers for an very attractive.

TAX SAVING
GUIDE
FREE
YOUR GUIDE TO TAX EFFICIENT LIVING

For The Financial Year 2015-2016
www.bajajcapital.com
INVESTMENTS INSURANCE CHILDREN’S FUTURE SOLUTIONS RETIREMENT SOLUTIONS TAX SAVING

Cover Story
MeeNAkShi SiNgh, 54 Delhi

Understandably, at her age, she is averse to putting
her tax savings into anything other than fixed-return
instruments. A smart move that she made is to take a
health insurance policy for `5 lakh.
I had once invested in a tax-saving

mutual fund, but feel it’s not meant for
a person like me.
exemptions, deductions, rebates and allow-

ances while ensuring that your investments
are in line with your long-term goals.
The first step towards optimising your taxes
is to list out the essentials that you have to
meet; for instance, there is little room for
manoeuvring if you are salaried on the PF
contributions. Deduct the annual PF con-
tribution from `1.5 lakh to know how much
more you can deploy towards tax savings. If
you are servicing a home loan, prioritise to
claim the most towards this financial com-
mitment. If you have children who are study-
ing, utilise the money towards their tuition
fee to reduce your tax liability.
Once these essentials are taken into ac-
count and you are still left with money to
save taxes, check your life insurance needs
and buy appropriate term insurance and
nothing else. This type of insurance will
protect your family and dependents in case
of exigencies. If you are still left with money
to save taxes, deploy the sum towards an
equity-oriented option, preferably the ELSS
Photo: gireesh. gv
for its short lock-in, though you can stay
Not yet 30, the couple have managed to invested in the scheme like another open-
use their tax savings judiciously towards ended diversified equity schemes.
repaying their home loan. If it had been You must also take health insurance for
planned well in advance, the duo could yourself and your family, for which you can
have borrowed to optimise their respective claim tax deductions under Section 80D.
tax liabilities and, at the same time, repaid From this year onwards, you can claim
their home loan. additional tax deduction of up to `50,000
under Sec 80CCD(1B) towards contribution
Smart tax planning in the NPS.
`50,000
Additional deduction
Where most taxpayers go wrong is by
focusing on tax planning as an activity
Having seen the benefits of aligning your
financial plans to tax plans, you can choose
in isolation. Tax planning is an essential the most suitable tax-saving instrument.
on savings in NPS part of financial planning, as efficient tax The more prepared you are, the better off
under Section 80 planning enables you to reduce your tax you will be especially if you are worried
CCD (1B) liability to the minimum. This is done by about owing money to the tax authorities,
legitimately taking advantage of all tax who are very efficient in collecting taxes.

Cover Story
Tax planning
strategies
Try these stylish moves to be in full control of your
income tax liabilities
J
ust the way a swiss army knife has savings into asset classes like equity and
its multiple benefits, the same can debt, they can match your risk profile and
be said of your tax savings, if done the most ideal asset allocation suited to you.
cleverly. For instance, instead of This way, your tax saving option is tuned to
addressing tax savings at the end work for you, forever.
of the year, make it a habit to do so at the If you are living in a rented accommoda-
beginning of each financial year. This way, tion, you can claim house rent allowance
you will have the time to think over how to (HRA) by submitting the rental receipts or a
deploy funds in instruments that work for copy of rental agreement with your em-
you. Likewise, if you broadly split your tax ployer. Note, if the annual rent exceeds `2
Photo: gireesh. gv
Dr Himani BHasin,
28 Delhi
This paediatrician has not
diagnosed her finances as well
as she could have. The fixed
return-type tax savings that she
has opted for is like preventive
medicine and not a long-term
cure for her finances.
I want to align my
financial plans with tax
savings, but I am not
aware of the options
that I have to realise
such an outcome.

lakh, then you are required to provide your Yet, these fixed-tenure tax savings can
landlord’s PAN as well. Avoid the mistake of be a great tool to use for those approach-
getting carried away by paying rent to your ing retirement or those already retired. For
spouse or to anyone for the house which instance, the maturity of the NSC or the tax-
you own. However, if you are living in your saving FD can be used to create an income
parent’s house, you can pay rent to the par- stream in years when it matures. So, if you
ent on whose name the house ownership are looking to use the entire `1.5 lakh into a
is. Try and limit the rent that you pay to less fixed-return tax saver, you could put `12,500
than `2 lakh, to make it tax efficient for your each month in a financial year into a five-
parent as well. year lock-in product in such a manner that
“I have saved tax by putting money in PPF, on completion of five years, the maturity
NSC, and bank fixed deposits,” says Delhi- proceeds will act as an income stream,
based Dr Himani Bhasin. She also confesses including the accrued interest.
that she did not realise that these could be
planned well in advance or to suit a plan Joint family move
that will work in her favour. Although her The Chaddhas of Noida, 43-year-old
current tax savings are in fixed-return finan-
cial instruments only, and they, at best, just
about manage to meet inflation. This means
Tamanjit and his 39-year-old wife Amrata,
run their own business and usually plough
whatever profit they make back into the
`2 lakh
The maximum tax
the taxpayers’ purchasing power is met business, and also some of their own sav- deduction allowed
in years when inflation is below the fixed ings. “We do our usual tax savings by way under section 24 of
interest rate, but it loses even that in years of investments and savings in FDs, PPF and a self-occupied
when the inflation rate is more than the mutual funds, but most of the money after property
fixed return on these instruments. the mandatory tax savings goes back into
Cover Story
tamanjit, 43, and

amrata Chaddha,
39 Noida
The couple have invested in
ELSS, FDs and insurance – life
and health to maximise their tax
saving option
Anything more than

mandatory tax savings
that we are left with
goes into our business
or as an investment
in property as we see
better value in that.
Photo: gireesh. gv
the business,” explains Tamanjit. There is ers will be able to divert the inheritance to
an opportunity that the Chaddhas are not the HUF, thus preventing taxation on such
using at the moment by way of creating income in their hands at their maximum
an HUF (Hindu Undivided Family). This marginal rate.
is a very effective and legal way to save tax
as the Chaddhas, like many other Indian Power of
families, are undivided and the incomes comPounding
earned by such families are considered Delhi-based 30-year-old Sanjeev Tanti falls
joint incomes as compared to individual in the highest tax bracket and invests in
incomes and are taxed in the hands of the equities, but is yet to put his money in
whole family. The family as an HUF can ELSS. “I am not convinced about these tax-
have a separate PAN and claim tax deduc- saving options and prefer the time-tested
tions the same way as individuals do. PPF and NSCs,” he says. Tanti has probably
A point to remember is that an HUF can not heard what famous physicist Albert
earn income from all sources except salary. Einstein had said, “the most powerful
It can invest the initial corpus as well as gifts force in the universe is compound inter-
`10,000
above which interest
received subsequently to start a business
and earn profits or capital gains. Ancestral
est”. You can benefit from the same with a
few intelligent tweaks to reduce your tax
property held by HUF can be let out to earn liability and, at the same time, benefit from
from bank, PO or rental income. In fact, the HUF arrange- the power of compounding. One way to
company deposits
ment especially suits taxpayers who have gainfully use this short three-year lock-in
trigger tdS
income from ancestral property and expect period is by planning it in a manner that
to inherit financial assets. Such taxpay- it creates an income stream in later years,

while also acting as a tax-saving instru-
ment simultaneously. Sanjeev, 30, and
Another way is to invest the entire `1.5
lakh tax savings under Section 80C into an
Sumita tanti, 29
Delhi
ELSS plan for three consecutive years and
be set for magic. In the fourth year, you have This software consultant is
the right to redeem the first year’s ELSS convinced about the power of
equity, but does not see ELSS
investment, which will be tax-free. This as an option for tax saving. He
redeemed sum can be re-invested as fresh has instead opted for traditional
investments on which tax deductions can fixed-return instruments.
be claimed. This way, without committing
fresh capital, you will have a long-term tax I am not convinced with
saving cycle, which will also free you of any NPS as an investment
fresh capital. This way, you set a perennial despite the additional
tax-saving mechanism in an ELSS scheme `50,000 that I can save
that not just saves you taxes, but also frees on taxes with it.
you from making any fresh investments
after the initial three years.
We often ignore the obvious and look for
ways to save taxes in the most mundane
and obvious ways. Nothing wrong with
it; however, with some deft handling of
finances, you can realise that even tax sav-
ings, when used effectively, can make a real
Photo: gireesh. gv
big difference to your finances.
Cover Story
Advantage ELSS
The dual benefit of tax savings and wealth creation
makes these funds a superior investment option within
the tax savings umbrella
M
ention equity investments the Central Board of Direct Taxes (CBDT)
and chances are most to qualify as a tax-saving instrument. So,
taxpayers will look the investments in this fund qualify for tax
other way. No wonder exemption under Section 80C of the
when it comes to income Income Tax Act, 1961.
tax, the focus is more towards savings than The mutual fund structure ensures that
planning taxes efficiently, which leads to these funds come with the dual advantage
suboptimal usage of the available tax de- of capital appreciation and tax benefits. It
ductions. One of the biggest challenges that also comes only in the growth option, so
every taxpayer faces is to preserve the value there are no complications of dividends and
of his money; basically ensure that it does reinvestments when it comes to ELSS. What
not lose its worth, which is possible only if it this means is that by investing in ELSS, you
beats inflation. The only known asset class effectively hit two birds with one stone—
that beats inflation in the long run is equity you can claim deductions under Section
and it is for this reason that every taxpayer 80C when investing in these schemes and
should make the most of the available tax you also get to experience the potential of
deduction that can be deployed in suitable equity investments through a mutual fund.
equity instruments.
The positioning of the equity linked Equity ExposurE
savings scheme (ELSS) is unique within Compared to other fixed-return options,
the universe of instruments in which one ELSS is the only option with significant
can save and invest to bring down the equity orientation as a tax saver. Though the
income tax liability. ELSS is also the most National Pension System (NPS) and even
unique mutual fund scheme as it is open Ulips have equity exposure, it is never as
for investments to only individual taxpay- high as what ELSS tends to have. ELSS has a
ers and HUFs (Hindu Undivided Families). minimum exposure of 65 per cent to equi-
This diversified equity fund is approved by ties compared to the maximum exposure
of 50 per cent allowed under the NPS and
40 per cent in retirement plans from mutual
funds (See: For a better retirement). If you
AshwAni KuMAr, look a bit deeper into the equity allocation
Fund Manager-Equity Investments, of some of the ELSS, it goes as high as 80-85
Reliance AMC per cent, or more. Yes, this does expose your
investments to higher risk, however, the
The focus is on investing three-year lock-in when investing in these
in companies with strong funds buffers the risk significantly.
earnings growth Further, each tax planning fund is
potential in the short

constructed differently, which means there
is choice with varying degree of risk when
term and those with a investing in these schemes. Keeping this in
competitive advantage. mind, the OLM Elite has a mix of ELSS that

suit the risk profiles of different taxpayers. shreyAsh DevAlKAr
At present, there are 22 ELSS schemes to Fund Manager-Equities,
choose from, which collectively manage BNP Paribas Mutual Fund
assets amounting to `37,290 crore,which is
12 per cent of the equity component of the Funds with a good mix of
told industry assets (as per Association of mid- and large-caps tend
Mutual Funds of India). What this means
for you as a taxpayer is that you can use
to perform better
the different benchmarks, portfolios and since opportunities
investment approaches to select a fund that exist across market
allows you to meet your twin needs of tax capitalisations.
saving and wealth creation.
insidE thE ELss record and history, making them a suitable

Like other diversified equity schemes, eq- option for every investor looking to save tax
uity linked saving schemes are also actively and invest in equities.
managed and have different characteristics, For instance, Birla Sun Life Tax Relief 96
which aid in their performance. To arrive at has more than 350 stocks available in its
a wide variety of ELSS that you can consider investment universe, which are selected
before investing between now and March based on rigorous and in-depth research.
2016, we have hand-picked eight different However, the fund’s portfolio has about 50
schemes with varying risk profiles and stocks in all, indicating the kind of filter-
investment approaches from the ELSS uni- ing process that is undertaken to arrive at a
verse. All these schemes are well-diversified portfolio. In contrast, Edelweiss ELSS Fund
equity mutual funds with a proven track has about 65 stocks in its portfolio indicat-
Cover Story
1-year 3-year 5-year 10-year Expense AUM

Fund return return return return ratio (` crore)
Axis Long Term Equity Fund 6.27 28.54 18.56 - 2.51 6,510
BNP Paribas Long Term Equity Fund 6.24 22.36 14.47 - 2.82 409
Franklin India Taxshield Fund 5.94 22.62 14.27 16.58 2.39 1,833
Religare Invesco Tax Plan 4.92 22.96 13.36 - 2.78 255
Birla Sun Life Tax Relief 96 8.23 24.08 11.15 14.9 2.38 1,950
Edelweiss ELSS Fund 6.48 20.22 11.22 - 2.89 61
ICICI Prudential Long Term Equity 2.38 22.32 13.14 14.96 2.41 2,782
Fund (Tax Saving) - Regular Plan
Reliance Tax Saver Fund -3.87 24 14.53 15.79 2.37 4,442
* Returns as on November 23, 2015; Expense ratio as on September 30, 2015 and assets managed as on October 31, 2015.
is a multi-cap fund with an endea-

JineSh GoPani vour to have at least 50 per cent in
Fund Manager, Axis MF large-caps and the rest in mid- and
small-caps.” The fund invests in
We believe in high- fundamentally sound companies
conviction investing while being agnostic of its benchmark
with a compact portfolio constituents. In contrast, BNP Paribas Long
reflecting the best

Term Equity Fund is overweight on private
sector banks, telecom and healthcare, and
ideas that fit into our underweight on IT, industrial capex, metals,
investment framework. and energy sector.
“The investment universe of the fund com-
prises about 220 stocks, which are selected
ing the kind of diversification that different based on the BMV (business, management,
ELSS follow. Naturally, the investment ap- valuations) philosophy of investing. The
proach adopted by each of the schemes is stocks with good business in terms of strong
different, depending on the fund’s stated moat, growth and catalyst are selected.
objective as well as the investment tactic Evaluation of management is mainly by
followed by the AMC and the fund manager. way of its aspiration to grow and corporate
Says Jinesh Gopani, fund manager, Axis governance,” says Shreyash Devalkar, fund
Long Term Equity: “Axis Long Term Equity manager-equities, BNP Paribas AMC.
What this means is that the commonality
across ELSS is the tax benefits they offer and
not the approach they adopt to investing. It
Vetri Subramaniam is for this reason that performance of ELSS
Chief Investment Officer, and varies, just the way it does for other diversi-
fied equity funds. Explains Mahesh Patil,
Vinay Paharia co-chief investment officer, Birla Sun Life
Fund Manager-Equity, AMC: “BSL Tax Relief 96 is a well-diversified
Religare Invesco Mutual Fund fund with a portfolio made up of around 50
stocks across 18 sectors. The fund strives to
The fund invests in a maintain its ‘high quality’ by investing in
diversified portfolio, stocks that have superior return ratios and a
which represents strong balance sheet.”
attractive risk-reward According to Vetri Subramaniam, chief
investment officer, Religare Invesco Mutual
payoff over long Fund: “The investment universe of Religare
investment periods. Invesco Tax Plan consists of unique names

Cover Story
KartiK soral
Equity Fund Manager,
Edelweiss AMC
For a better retirement
T
A three-year lock-in helps he tax saving option from mutual funds is
manage liquidity risk, not restricted to the popular ELSS; there
which allows the fund is also a retirement plan offered by a few
asset management companies (AMCs). Under
managers to explore mid- these schemes, investors invest for a very long
and small-caps, where term as early withdrawal
trading volumes are low. by way of redemption is
discouraged before one
retires, with the standard
in the BSE 200 Index, the CNX MidCap retirement age taken as
Index, and three sector indices along with 58 years.
select bottom-up stock ideas. Investment in retire-
The total universe of stocks for the fund ment plans qualifies
as on September 30, 2015, was 293 stocks, for tax deduction
which is the same as that of the fund house.” under Section 80C.
For retail investors, the lesson when in- The schemes have
vesting in ELSS is to understand that these been approved by
schemes have high-quality portfolios, which the CBDT, accord-
work towards superior risk-adjusted and ing to which the
consistent returns over a medium to long- scheme can have
term horizon, something that is in-line with an investment
investor expectations. What’s more, you can exposure of
invest regularly through SIPs or even by way 40 per cent in equities and the rest in debt.
of lump sum investments, and hence plan Although the equity exposure may not seem to
over the entire year when to deploy money be high for long-term investors, for the very long
towards tax savings. term, even this level of equity allocation over
different market cycles should help in creating a
Suitability sizeable retirement corpus.
Overall, the performance of ELSS funds is These funds work in two parts—first is the
less volatile. Says Kartik Soral, equity fund accumulation phase when one can invest in
manager, Edelweiss AMC: “ELSS are suit- these towards building a retirement corpus and
able for investors looking to invest in equi- also get tax benefits, and the second when the
ties for a minimum period of three years corpus can be utilised as payout in retirement.
and also looking to claim tax benefits under The payout phase can be in lump sum or work
Section 80C of the Income Tax Act.” The as a regular payout by way of a systematic
lock-in in ELSS funds enforces a disciplined withdrawal option.
These plans were introduced two decades
ago, with UTI Retirement Benefit Pension and
Franklin India Pension Fund being the only two
GeorGe JosePh funds in vogue till, in early 2015, Reliance AMC
Fund Manager, ICICI Prudential AMC introduced a retirement plan, with several other
AMCs planning to launch similar schemes. While
The fund invests in they have less equity exposure as compared to
growth- and value- ELSS funds, these schemes have the built-in
oriented stocks with discipline to ensure that you save towards your
retirement with tax savings and also build a
focus on fundamentals sizeable corpus.
of the business and the
industry structure.

approach to investing and gives fund Mahesh Patil
managers the freedom to explore bet- Co-CIO, Birla Sun Life AMC
ter investment opportunities.
“The three-year lock-in period gives us the The three-year lock-in
leeway to invest in good companies without prevents any redemption
worrying about redemptions and instead
pressure on fund
managers and allows
concentrate on building a good portfolio.
Companies take time to grow and expand
their business, which, in turn, would reflect them to take strategic
in its finances. So, when investing in these long-term investments.
stocks, a lot of patience and discipline is
required to see the company perform,
increase its profits and thereby add to ents of that you need in your first fund—it
shareholder returns,” explains George is well-diversified, has a three year lock-in
Joseph, fund manager, ICICI Prudential to reign in your anxiety, and comes with tax
AMC, on why the three year lock-in not only savings on your investments. For this reason
helps the taxpayer but also fund manag- alone, one should consider investing in
ers to make the most of the investments in ELSS because, in the long run, equity is the
these schemes. only asset class that has the potential to beat
There is definitely a lot going for these inflation and build wealth. This fact has been
schemes for every taxpayer to consider proved by numerous studies. With benefits
investing in them. In fact, if you do not have of capital appreciation and tax benefits, these
any investment in mutual funds, ELSS is one type of funds can be used by you to align
category where you can start investing, to your investment plans with your taxes.
begin with. It has all the necessary ingredi- olmdesk@outlookindia.com
Family Finance
ShreeSh, 33, and

anumeha bajpai,
Photos: gireesh. gv
28, with Son
ShreyaS gurgaon
Finding feet “You should have enough
savings before you think
While giving up the comforts of a foreign land of shifting to another
was tough, things are slowly falling in place country as they will help
you bear the cost of
for the Bajpais, finds out Khusbhoo Rajput resettlement.”
O
n a sunny, wintery parents to join him in Australia, it did life in Australia far better than in In-
Sunday in Gurgaon, the not go very smoothly. dia. An alumnus of IIT Kharagpur, he
Bajpai family of Shreesh, “My wife was also working in those had almost made up his mind to stay
his wife Anumeha and days and we were leading a very there forever. It was only natural that
2-year-old son Shreyas make the busy life, leaving very little time for both he and his wife took up
subject for a perfect family portrait. my parents,” he recounts. Though Australian residency, to avail of the
At 33, Shreesh is already a veteran in retired, the senior Bajpais had a support and benefits that are pro-
the mining industry, having worked life of their own in India unlike the vided to the citizens.
across geographies, and has come one in Australia, where they had to Anumeha took up a job as a soft-
back to settle in India. “I am the only depend on their son and daughter- ware engineer and found it equally
son and my parents are getting old, in-law for almost everything. They rewarding and satisfactory. Things
so it was only a matter of time before decided to come back to India in were good till 2012 when profes-
I had to make this decision,” he says. 2014. Shreesh, on the other hand, sional advancement resulted in
Although he tried to relocate his found professional satisfaction and Shreesh leaving his permanent job

in Australia for a contractual open-
ing in Indonesia. “I had specialised
in underground mining but the
job in Indonesia was in the open
cut mining sector. I wanted to give
six months to the contractual job
before deciding what to do next,”
he recounts. Although there was no
stability in the contractual job, it paid
handsomely.
Change in plans
He left the Indonesian job in late
2012 for a better opening in New
Zealand. “The job opening allowed
me to try out yet another country,”
he says. The couple decided to start a
family in New Zealand but by March
2013, the company where Shreesh
worked collapsed due to environ-
mental issues. Unemployed and fac- her child in Australia, given the him a visit in May 2014, but decided
ing familial responsibilities, Shreesh better medical amenities. Shreesh against settling there permanently
thought of coming back to India and landed a job in Australia in July 2013, and returned to India in October,
starting afresh. However, Anumeha which coincided with the birth of the same year. The couple decided
felt it would be better if she delivered their son. Shreesh’s parents paid to move back to India following that.

Family Finance
started planning for the relocation in, including pollution, which they
six months in advance. He started are just about coping with. “Noth-
applying for openings while he was ing is organised and it is difficult to
in Australia and landed a job with trust anyone easily. I miss the long
Adani Enterprises. The company drives we used to take in Australia.
helped him a lot in relocation. “We I don’t consider Indian roads to be
moved back with just our clothes safe at night,” he says. But that does
and a few things that I felt I would not mean that he is unhappy with
not find easily in India. I got them the move. “We like eating out and
shipped to India and was reim- the variety here is just too good to
“The Indian mining sector was open- bursed by my current employer,” he complain. Besides, we find time for
ing so, in that way, it was a good time says with a sigh of relief. our parents, which was not happen-
to be in India,” says Shreesh. While ing despite the comforts we had in
the entire process of relocation and Adjustment blues Australia,” he says.
paperwork, and the anxiety around The process of relocation to India Another reality that has struck
it existed, they felt they had age on was very different from his earlier Shreesh is the cost of living in
their side to start afresh in India. experiences in Australia, Indonesia Gurgaon, which he feels is quite
By now, the couple had not only and New Zealand. “You should have high. “We could live very comfort-
accumulated a lot of worldly goods, enough savings before you think of ably with a single salary in Australia,
they also had a small child to think shifting as those savings will help but it is a challenge here. In that
of before planning their next move. you bear the cost of resettlement. sense, life was easier in Australia,” he
It took them some time to decide When you are new to the place, adds. He is also looking to get into
to settle in Gurgaon, which is close sometimes you end up paying investing so that he can work on his
to both their parents’ places— extra for even a plumber or an finances for their long-term stay in
Shreesh’s parents stay in Lucknow electrician,” says Shreesh. The city India. He already has investments in
and Anumeha’s live in Kanpur. To is crowded and traffic is another the form of a plot of land in Kanpur
make the transition smooth, Shreesh issue the Bajpais had not factored and a flat in Lucknow, but is in no

hurry to buy a house in Gurgaon as
he feels prices are likely to fall. “I am
also looking for a good time to con-
vert my Australian savings to Indian
rupees,” he says.
With no state-provided benefits,
he has enhanced his medical and
life insurance cover, and also taken
`2 lakh medical insurance for his
parents, other than a government-
provided cover for his father. “When
you are relocating to a new country,
buying a medical policy should be
your primary concern,” says Shreesh.
He is also saving each month instead
of borrowing money to buy things for
his current home. The couple is also
fond of travelling and are hoping to
explore India with their son in the means his education will be free in before facing what life has to offer
coming years and take frequent Australia. The couple intend to send next. “We want to spend time with
family holidays. him there for higher studies once our parents for they are at a stage in
While Shreyas is yet to get into a he is old enough. With things finally life where they need us, a trait that
school, the couple is not really wor- falling into place, the couple is keen we want to pass on to our son as
ried about his future as Shreyas is to give time to their relocation to well,” quips Shreesh.
an Australian citizen by birth, which India and make the most of this stint khushboo@outlookindia.com

My Plan
Photos: soumik kar
Getting methodical
A few tweaks to their existing finances should see the Borwankars
realise all their financial goals, according to Harsh Roongta
I
t doesn’t take very long to looked into. As per his income, across as an aggressive investor,
form an opinion about Prasad expenses and other savings, he has he had parked money in bank FDs
Borwankar: a complete family been recommended to increase his instead of considering liquid funds as
man, living with his parents and equity holdings from 27 to 35 per an alternative.
working wife, Vaidehi, and a doting cent and reduce his debt allocation
father to his 2-year-old daughter. He from 28 to 18 per cent. The allocation Changing tact
chose to get a plan made because he towards real estate has been margin- The surprising part of his finances is
wanted to get his finances in order, as ally increased from 40 to 43 per cent that he has made several investments
he had been investing randomly over for he wishes to buy one more prop-
the past eight years without linking erty to eventually live in after selling
his investments to any goals. Though his Malad house where he lives, to be
investments were regular, they were left with one house as an investment. If, like Prasad and Vaidehi, you
not channelised to offer a financially It was encouraging to note that the would like to share your story and
have a financial plan made by a
healthy future. 34-year-old has taken adequate life
financial planner, write in to us with
The mandatory risk analysis of insurance for himself and his wife. your contact number at editor@
the couple puts them under the Likewise, he has taken appropriate outlookmoney.com
aggressive investor category, based health insurance, which also covers
on which his existing finances were his ageing parents. Despite coming

Goals
Harsh Roongta Holiday Car Home Daughter’s Retirement
`2 lakh `12.6 lakh `2.5 crore ` 1 lakh

Chartered accountant education
and SEBI registered
investment advisor
in 2017 in 2018 in 2020 `20 lakh every month
The planner can be reached at
harsh@harshroongta.com in 2030 from 2031
Other savings Income

and investments Daughter’s
marriage
Cash and equivalent ` 50.45 lakh

`6 lakh Monthly
income
in 2035
`2.66 lakh
Debt and Equivalent
`34.62 lakh
Equity and Equivalent Net savings Other
`33.5 lakh Household
expenses
` 1.38 lakh expenses
`81,000 `46,567
in mutual funds and equities. equity investments earmarked for The Borwankars lead a frugal
Although it is good to note a sig- each financial goal and shift these lifestyle, which leaves them with
nificant allocation to equities, the investments systematically to debt sufficient savings and investible
procedure adopted for investment about 36 months before the goal date. surplus every month. While they
lacks planning. Predictably, he has Prasad’s existing outstanding wish to stop working when they turn
several overlaps in his investments, loan is `23 lakh on which he pays 50, it is too early to debate on that.
which means it is diversification only `26,000 EMI at 10.5 per cent inter- However, the way their finances are
in numbers. est. This should be transferred to placed currently, every provision
The recommendation for him is to SBI’s Maxgain Scheme at prevailing has been made to ensure that they
exit direct equity investments and interest rate of 9.9 per cent. In doing achieve their retirement goal. Thus by
concentrate on a manageable portfo- so, he will not incur any pre-payment bringing order to their investments,
lio of mutual funds. As an extension, charges in the future and will also the Borwankers are much closer to
he should invest systematically in save `800 on EMI. meeting their goals.
A plan to act on research and analysis

■ Invest money in good MF schemes
■ Sell your equity investments and
Contingency corpus account under SBI Home Loan Max reinvest in recommended MF
■ Your current monthly expenses Gain scheme when it is opened schemes under the growth option
are `1.3 lakh and it is recommended ■ Instead of investing in sectoral or
that you maintain three months of Investments thematic funds opt for well-
this reserve, that is `3.9 lakh, as an ■ You have investments in 25 instru- diversified funds, which invest in
emergency fund ments including stocks and mutual stocks of various companies in
■ Invest the money from the savings funds (MFs), which is extremely time different sectors
bank account in ICICI Pru Money consuming to track and maintain ■ All existing investments should be
Market Regular Fund ■ Direct investment in equity is not allocated towards your major goals
■ Transfer this amount to the linked advised, as it requires in-depth ■ You should periodically review your

My Plan
■ Existing balance in equity MFs

amounting to `14.25 lakh should be
earmarked towards this goal
■ Investments in direct equity
amounting to `5.07 lakh should be
allocated towards this goal with the
redeemed sum put into recommend-
ed MF schemes
■ You are advised to shift your equity
investment systematically to debt,
about 36 months before retirement
age, including any new investments
during this period
Daughter’s education
■ You would like to plan for your
daughter’s education after 15 years
and would like to provide `20 lakh in
present value for this goal
Photo: soumik kar
■ Investments in direct equity
portfolio and rebalance it as per your your retirement corpus when you amounting to `15 lakh should be
asset allocation turn 50 and wish to maintain the allocated towards this goal, by
current lifestyle directing it to mutual funds
Retirement plan ■ The balance in your PPF and EPF
■ You have indicated that you need should be allocated to this goal Daughter’s marriage
■ You would like to plan for your
daughter’s marriage when she turns
Life insurance ■ Disability insurance pays a lump 22 and provide `7.50 lakh in present
■ Adequate life insurance is a must sum in the event of suffering from value for this goal
to make sure your family’s lifestyle a debilitating disease such as can- ■ Start investments in a monthly SIP
is not affected if you die early cer, stroke, organ failure or of `4,700 to meet this goal
■ Considering your existing assets disability arising from an accident. ■ Invest `4,200 in ICICI Pru Top 100
and your respective incomes, you ■ You should take accident Fund (G) and `6,000 per annum in
have taken adequate life insurance insurance, including disability Sukanya Samriddhi Yojana
for yourself and your spouse cover (Bajaj Allianz Premium ■ You are advised to shift your equity
Personal Guard or Apollo Munich investment systematically to debt
Individual Personal Accident Plan) about 48 months before marriage
Current health insurance
Particulars Plan 1 Plan 2 Vacation
Sum Assured `20,00,000 `20,00,000 ■ You would like to go for a dream
vacation after three years, which will
Premium `13,000 `10,500
cost you `2 lakh today
Type Family floater Family floater ■ Half of your existing fixed deposits
Members Self+Spouse+Child Parents should be allocated for fulfilling this

goal of taking a vacation
■ Continue your existing policies for `50 lakh and a critical illness ■ Redeem the FDs and invest the
■ You must port your existing policy (Aviva Health Secure) for proceeds in HDFC Cash Manage-
health insurance at least one `50 lakh for yourself. Both these ment Fund and transfer the amount
month before, if you quit your job. policies will cost you around systematically to HDFC Balanced
The situation needs to be reviewed `38,700 per year in premiums. Fund over a period of 24 months
at least once every year for changes Considering your existing assets ■ Withdraw the required amount
in regulation and coverage by the and your income, your spouse after three years for this goal and
insurance companies. does not need disability insurance. continue to hold the balance invest-
ments in the same fund.

Enterprise
Risk proof your business

Taking on risks can leave most businesses vulnerable but having an
insurance cover assuages any unforeseen setbacks, says Anagh Pal
While it does not feature in the

priority list of most start-ups, the
importance of insurance is signifi-
cant. A start-up that does not have
insurance is as much at risk as an
individual who does not have health
or life insurance. Insurance can
protect a start-up from making
losses on its assets, liabilities and
human resource. If adequately
insured, a start-up can take un-
expected and nasty surprises in
its stride with little or no financial
damage and the business can con-
tinue on its growth path.
“Insurance also gets client con-
fidence in your business as they
know that a particular freak incident
won’t put you out of business,” says
Abhishek Rungta, CEO, Indus Net
Technologies, a Kolkata-based web
development and digital marketing
company, and also a co-founder of
Seeders, an angel fund and incuba-
tor for tech start-ups. There is a wide
range of insurance covers available
for businesses to ensure protection
against any mishaps. (See: Ring-
fencing your business).
mix ‘n’ match

Says Pushan Mahapatra, general
manager and COO, SBI General
Insurance; “Most insurers offer
package policies for small size
enterprises to cover their multiplic-
ity of risk requirement under the
business package policy.” One such
N
asty surprises can wreak looted. All businesses are fraught example is the general liability in-
havoc for a business, with risk and it is no different for surance. “General liability provides
especially for a start- start-ups. In such cases, insurance financial protection for businesses
up. Take, for instance, a provides a way out by insulating in the event of lawsuits and claims.
high-value shipment of an e-com- businesses so that they can deal These may arise as a result of inju-
merce company that gets lost in with emergencies that would other- ries or property damage connected
transit or a week’s earnings col- wise throw their growth process out with the business,” says Manu Jolly,
lected from different centres being of gear or even lead to their death. CEO of Delhi-based Digiperform, a

digital marketing training company.
Shipdesk is a start-up that pro-
vides online merchants with cloud-
based shipping solutions. It covers
all goods in transit by minimum
liability insurance provided by
courier companies. “But there
is a growing demand by online
merchants for covering the entire
value of goods and hence we are in
talks with insurance companies for
designing custom-made plans,” says
Lipjo Joseph, co-founder.
There are different kinds of insur-
ance covers that cater to different
needs of businesses, including start-
ups, and the cost structure varies
accordingly. Says M. Ravichandran,
president-insurance, TATA AIG
General Insurance: “The important
points to be considered are
adequate limit, right retention, cov-
erage customised to the need and
carved-out exclusions to make sure
there are no gaps.” For instance, in
case of Petoo, a Bengaluru-based
start-up in the online restaurant
space, which produces food
centrally and sends it to distribu-
tion points, worker’s compensa-
tion insurance is a must. “Money Kumar Setu
insurance is a must for us as cash Co-founder, Petoo, Bengaluru
Photo: rajkumar. s.
is handled at outlets and insurance
covers any movements of cash from With several new generation start- We handle a lot of cash
different outlets to our office,” says ups running their businesses on in our outlets and hence
Kumar Setu, co-founder, Petoo. data and technology, any breach of insuring the cash is a
Likewise, there is the key man security is a big cause of concern. must for our company.
insurance, which provides life cover For such companies, there is cyber
to important members like the co- liability insurance, which provides
There are other types of
founders, and group and accidental coverage if there is theft of both insurance available to
medical insurance for workers. A first- and third-party data. Says Jolly, safeguard our business
similar cover is available for director “Since we are a digital marketing from unknown perils.
and officers’ liability against any training company offering courses
decisions taken by them. to different professions, data is the
most significant component of the
anuraag Kaul organisation and needs to be pro-
Wholetime Director and Principal Officer, tected from any breach.”
JK risk managers and Insurance Brokers
Navigating the cover
Insurance needs will vary from one
Start-ups could be categorised as start-up to another. There are tra-
being in manufacturing or services ditional risks that all start-ups will
sector and the kind of insurance face and specific risks that a start-up
cover will vary for each of them. can face depending on the nature

Enterprise
Ring-fencing your business

and omissions or by employees for given bad advice. This is critical for
wrongful dismissal or harassment. start-ups in the legal, accountancy
and financial service sectors.
Asset based insurance: Products
at warehouses are at risk. Also, use Errors and omissions insurance: It
of any industrial equipment can protects the start-ups from problems
damage the product causing financial related to products or services that
losses, which can be insured. cause a financial loss to a customer
or third party. This is an important
Building and establishment insurance policy recommended for
insurance: You can purchase tech start-ups.
buildings and contents insurance for
premises, fittings, equipment and Crime or fidelity insurance:
E very business faces risks. While

some of them can be managed,
others need greater attention by
stock to protect your business from
losses caused by theft, fire or flood.
Internal frauds and crimes are a fairly
common risk and businesses can be
insured against them.
way of insurance. We look at some Key employees insurance: Insuring
of the risks that start-ups face, the key employees protects the Cyber liability: Majority of start-ups
which can be insured to reduce their business against loss in the event of involve portals, apps and softwares
financial implications. their absence due to serious illness, to maintain consumer data, and
injury or death. companies run on comprehensive yet
Directors and officers insurance vulnerable networks. While a data
and Employers practice liability Professional indemnity: Ideal breach would lead to a legal liability,
insurance: Litigation against senior for protection of employees and any compromise in network security
management, directors and officers promoters against legal action taken would affect the financial state of the
either by shareholders for errors by those who believe they’ve been company and can be covered.
of the business. “It all depends on is important to remember that such claim. Hence, it is recommended to
what is critical for your business costs are a small component of the take the services of a professional
and what are the major risks your total cost to the company. A start-up insurance advisor or broker.
business, clients and employees are is advised to get competitive quotes Says Anuraag Kaul, wholetime
exposed to,” says Rungta. for the policies through professional director and principal officer, JK
Thinking that insurance is not a insurance agents. Risk Managers and Insurance
need and not going for it is one of However, insurance policies are Brokers, “The best way for start-ups
the biggest mistakes start-ups make. often complex and it is difficult to approach the insurance tangle is
Getting yourself insured for the vari- to compare policies based on to look for a good insurance broker.
ous risks should be a top priority. numbers. They come with several Buying an insurance cover without
Premium costs need to be consid- clauses and all of these come into taking due care will always land
ered while going for insurance but it action when you actually make a people in a soup.”
“Going through a broker helps one
Pushan Mahapatra to take the right insurance cover
General Manager and COO and not just go for the cheapest
SBI General Insurance one available,” says Jolly. The right
protection not only guards your
A wide range of insurance products business from any nasty surprises,
covering personal accidents, public but also ensures a good night’s
sleep. Get covered, now.
liability and common law liabilities With inputs from Aakar Rastogi
are available for businesses. anaghpal@outlookindia.com

Tail Light
Premium shift
The S-Cross and Creta have been launched as entry-level luxury
vehicles but are these really value-for-money? Meraj Shah finds out...
Vs
The competition
If you’re in the market for an SUV, then take your time and test drive these as well:
Renault Duster: Tried and tested; AWD available; 475 litre boot; better ride quality
Mahindra XUV 500: Serious value-for-money; lots of cabin space; diverse features
Ford Eco Sport: Contemporary looks; 1.0 litre petrol option; loaded with tech; ideal for city commute

T
he one thing that you like
Suzuki S-Cross
immediately about the
S-Cross is that it doesn’t
pretend to be an SUV. And,
given the ‘compact SUV’ frenzy
in the market right now, that’s no
small matter. Manufacturers keen
to join the party have introduced
sedan variants with appropriately
‘muscular’ styling cues taken from
bonafide SUVs. Now, Maruti has
ruled the roost in the mass consum-
er market in India for too long to try
a disingenuous stunt like that. The
S-Cross is, and looks like, a really
big hatchback. really driven home with the leather Besides, this is the best highway
That said, it’s no head turner as seats and seven-inch touchscreen tourer from Maruti’s stable yet. In
looks go—alpha males in search audio system (with USB, AUX and that sense, the S-Cross strikes a bal-
of an aggressive-looking vehicle Bluetooth connectivity, plus naviga- ance between its fun-to-drive and
can stop reading just about tion and voice commands). The family-car credentials. Unfortunate-
now. But the big hatchback Bi-Xenon projector headlamps are ly, that performance is the preserve
or ‘premium crossover’, as a first in this segment, as are the of the 1.6 litre, which doesn’t come
Maruti describes it, isn’t automatic rain-sensing wipers and cheap. Duties and taxes add up
an eyesore either— lights. There is adequate head room to a `3 lakh premium over the 1.3
plainly targeted at and foot space in the front and litre. Whether or not you feel that
those looking for a rear—perfect for four people and premium is justified will depend
practical premium accommodating of five. on what weightage you attach to
vehicle and those The S-Cross is only available in performance. In terms of luxury, the
who want to stay two diesel-powered options: 1.3 litre diesel is at par with the
within the Maruti DDiS 200 and DDiS 320. 1.6 litre and sold in all four
umbrella (there The 200 DDiS has a 1.3 variants—Sigma, Delta,
are upgrades for litre motor (that also Zeta and Alpha (the 1.6
existing custom- powers the Ciaz), litre is only available in
ers). Positioned while the 320 DDiS the top three variants).
somewhere be- comes with a brand
tween crossovers new 1.6 litre motor
and SUVs, the that’s imported from
S-Cross is almost as Italy. On the road,
long as the Renault there’s no competition
Duster, as wide as the about which one we’d recommend:
Ford Eco Sport and taller with 118 bhp and oodles of torque,
than the Hyundai i20 Active, Fiat the 1.6 litre S-Cross zooms ahead.
Avventura, VW Cross Polo and
Toyota Etios Cross.
S-CROSS SPECIFICATIONS
Get past appearances and the
build quality is immediately ap- Engine: 1300cc/1600cc
parent. Tipping the scales at 1,250 Turbo Diesel
kg, the S-Cross is heavier than Power: 89bhp/118bhp
the Duster and feels solid in all Torque: 200NM/320NM
aspects—doors close with a reassur-
ing heavy thud and all fittings in the Price: `8.34–`13.74 lakh
all-black theme-cabin are premium Warranty: Two years (or 40,000
to the touch. The upmarket theme is km), extendable to four years

Tail Light
O
Hyundai Creta
ne look and you know

that Hyundai has nailed
it with the Creta’s
styling. And if you’re
instantly reminded of Hyundai’s
flagship SUV—the Santa Fe—then
you’re spot on, too. The Creta looks
like a Santa Fe that’s been on a
crash diet and with good reason
too, you’d think. Cast in the mould
of Hyundai’s new design language,
this is a strikingly handsome car. So,
it’s no ‘crossover’ then—the Creta
looks exactly like the vehicle an
aspirational would-be SUV owner
is looking for. The 17-inch wheels
on the top-end SX (O) version,
which we drove, make a significant
contribution to its road presence; has ditched the CD player (thank-

in the event that you do buy a lower fully) and the screen also displays
variant of the car, then consider navigation maps (MapMyIndia). As
upgrading to these. far as space goes, the reclining roof
Behind the wheel, the driver’s does make the rear feel a bit smaller
orientation feels almost car-like. than it is but there’s a surprisingly
Cabin fit and finish are as top-notch generous amount of legroom for
as you’d expect in a Hyundai both front and rear passengers.
vehicle, in fact i20 Elite drivers will That said, by its own benchmark,
feel instantly at home in the Creta. Hyundai hasn’t done anything ex-
There’s a prominent ICE touch- ceptional with the Creta’s interiors.
screen that headlines the dashboard The all-black theme is fine, and all
and accommodates AUX, USB and fittings seem fairly premium, but
Bluetooth audio inputs. Hyundai not exceptional. You won’t be able
CRETA SPECIFICATIONS
Engine: 1400cc/1600cc Turbo
diesel/1600cc petrol
Power: 89bhp/126bhp/121bhp
Torque: 224Nm/260Nm/154Nm
Price: `8.69-`13.80 lakh
Warranty: Three-year unlimited
mileage (extendable to five years)

Tail Light
glovebox, which you’ll find on

the i20 Elite, haven’t made their my
way to the Creta. Why Hyundai
has stuck with rear drum Pl an
brakes—not even the SX (O) has
four discs—is a bit inexplicable.
Under the hood, no complaints
in the 1.6 litre diesel that we
drove. Scores of Verna drivers
swear by this engine which, in
the Creta, puts out 126 tak e the
horses—more than enough to
propel the 1.3 tonne vehicle with Gue ss wo r k
adequate gusto. There’s also a
1.4 litre CRDI diesel option and out o f your
a 1.6 litre petrol variant for those
who’d rather stick to the cleaner fi n a n ce s
fuel. Most crucially, the 1.6 litre
diesel comes with an automatic
option as well. For city
to find fault with any- slickers, that’s where
thing, just don’t expect the search ends. As
to be ‘wowed’. There’s it does, I suspect,
also some frugalness for women
in terms of the kit drivers—the Creta
considering that its is just slicker
the features that have than its competi-
differentiated tors, and that will
Hyundai’s cars, spe- definitely buttress its
cifically the i20. Unlike the case to the ladies.
S-Cross, there are no auto-head-
lamps or rain-sensing wipers. Even The writer is Web Editor, Outlook
the auto-folding rear-view mirrors, Traveller, and pens automotive
steering reach adjustment or cooled reviews for several publications.
Bottom line
T he Creta and S-Cross, whilst being in the same segment, are in fact targeted
at consumers with different mindsets. The S-Cross is biased towards
practicality while the Creta is just downright better looking. The S-Cross is
loaded with features including ABS and two airbags, which are standard across
all models. It also has disc brakes on all wheels unlike the Creta that has drum
brakes on the rear wheels. The Creta also has ABS as standard but airbags are
offered only from the S+ variants onwards. So, on safety parameters and if Get it a n alyse d
you’re considering the lower variants, the S-Cross is a better choice.
On the other hand, the Creta is available in petrol and automatic variants. The to ach ieve
latter is a deal breaker for the S-Cross if you’re going to use the car for your daily
commute. Also, Hyundai has a fantastic reputation for its after-sales service as your d r e a m s
well as reliability. The three-year unlimited mileage warranty sweetens the deal.
None of these vehicles are offered in all-wheel-drive or 4x4 and aren’t likely to
be much good off-road. If you want to go into the rough stuff, then look at the
Mahindra XUV 500 or the Renault Duster.
Write in to us with your
contact details at
editor@outlookmoney.com
Technology
TheFitnessb
T
ired of the “health is
wealth” advice from
well-meaning elders
membership, what you really need to
take your fitness game up a notch is the
right tech. Gadgets and apps that can
optimise and track your performance,
no matter how big or small your goals
(or your budget) is! Here are our top
and finally decided to do let you start seeing how much activity picks for the fitness tech to, quite
something about your fitness? Beyond and exercise you get on a daily basis, literally, transform your life and take
the new running shoes and a gym how many calories you burn, so you can your workouts to the next level.
For the masses
Goqii
If motivation (or lack thereof) is the real issue, consider

Goqii. Sure, the fitness tracker does the usual step/distance/
calorie/sleep tracking, is water resistant and syncs with your
smartphone over Bluetooth…but you’re not really paying for
the band. Instead, you’re paying for a 3/6/12 month coaching
subscription service using real, live personal trainers based
out of Mumbai, who monitor your workout and what you `999
eat, and give you tips via daily text-based chats and monthly
audio/video calls. Also consider: Fitbit Flex (`6,990) and
Fitbit Charge HR (`12,990)
Xiaomi Mi Band
If you’re new to fitness wearables and want to start small

as you figure out which one to pick up, the Mi Band is a great
place to start. You wear the water-resistant Mi Band on your
wrist and the built-in pedometer tracks your activity levels
and your sleep cycles, showing you data on the Mi Fit app
(Android/iOS). It’s got a phenomenal 30-40 day battery
life, and can double as an alarm clock and an incoming call
notifier when paired with your smartphone. Another great
`3,999 alternative is Micromax's Yu YuFit (`999) which adds in a
display, making it more convenient to check your activity,
as opposed to checking stats on your smartphone if you're
using the Mi Band. Of course, the trade-off is the shorter
battery life.

brigade
With health being a top
priority among people,
Tushar Kanwar explores the
world of wearable fitness
gadgets and apps
For the serious fitness enthusiast
TomTom Multi Sport Cardio
The brand synonymous with in-car GPS systems

has come out with a surprisingly competent fitness
wearable in the form of Multi Sport Cardio. Its large
strap and dual-color finish means you’re likely to only
want to wear this while you’re working out, but when
it’s on, it does a great job of tracking your workouts
accurately. Whether it’s laps in the pool, running a
jogging route, a session on the treadmill or a breezy ride `19,990
on the bike, the Multi Sport Cardio uses the accurate
GPS tracker to calculate the distance you’ve run or
the altitude you’ve climbed, not to mention how your
heart’s been doing with its integrate heart rate monitor.
`23,499
Fitbit Surge
With continuous heart rate monitoring and built-in GPS, the

Fitbit Surge is one of the most feature-rich fitness bands
you will find, and the level of functionality and price puts
it squarely in the market for a power user. Step/distance
tracking, calorie counts and sleep quality are a given, and
the Surge is able to track different types of exercise such as
running (outdoors routes via GPS as well as on a treadmill),
yoga, strength training, hiking, weight lifting, and more. The
always-on monochrome touchscreen LCD shows you the
stats on your wrist, and it can handle music controls and call
and text notifications from your phone as well, allowing it to
double as your everyday watch.

Technology
Top fitness apps Activity trackers are great, but if you’re still in two minds about
picking one up, you can use one of these to go from fat to fit easily.
FirstRun and set goals, which the app reminds smartphone’s sensors. You get both
Designed for folks who’ve never run you to follow via an audio coach. pedometer (step tracking) and route
before, FirstRun coaches you to get tracking capabilities, and there’s food
up and get going towards running a Strava logging should you want to track what
few kilometers. Users can select from Ideal for cyclists and runners, Strava you’re eating and how much you need
two running programs—5 km or 10 tracks your ride/run via GPS, including to burn as a result. Social features
km. And, to ensure motivation levels helpful stats like changes in elevation abound as well, so you can compete in
don’t drop, actress and fitness icon Gul and your pace each day. Up for some leaderboards and challenges against
Panag serves as an in-app personal competition? The app allows you to your friends.
trainer to keep you on track! compare against friends or others on
the same route, and even measures Runtastic
Endomondo your performance against people in Another one for running enthusiasts,
A long-time favorite, the Endomondo your age/weight/height group. If you Runtastic works with your phone
app urges you to 'free your are on vacation, Strava helps map GPS to track speed and your running
endorphins' and lets you track popular running and biking trails, too! route, and the aerial maps and graphs
duration, distance and calorie burn are an excellent way to visualise your
along with route maps. You can set Fitbit daily runs and show off your running
up your own training programs to Fitbit’s user-friendly companion app accomplishments on the social
monitor your daily or weekly progress, can pull in a host of data from your network of your choosing.
For the data obsessed

Jawbone UP3
Jawbone’s latest in its

family of fitness trackers
packs in a handful of
sensors—a new tri-axis
accelerometer,
`9,990
bioimpedance sensors,
and skin and ambient
temperature sensors. Put
simply, the stylish UP3 Fitbit Aria WiFi Smart Scale
can measure your sleep
levels, resting heart rate,
perspiration, BMI and The weighing scale generally doesn’t win any popularity
hydration levels, providing contests given the truth it reveals, but Fitbit’s Aria may
new insight and data that change your perspective. Aria tells you more than just
hasn’t been seen in a fitness what you weigh—it can track body fat percentage and
tracker yet. The band lacks Body Mass Index (BMI) for up to eight members of the
a display, but Jawbone family, and transfer the data wirelessly to your phone
`14,999 compensates via an
excellent app for coaching
or PC to manage progress. Best of all, it automatically
recognises you every time you step on the scale and syncs
and lifestyle tracking. with any other Fitbit devices you own!

Are your Family Finances in good shape ?
Do you have the right mix of Investments ?
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Expert Speak: Nilesh Shah pg 30 My Plan: Getting methodical pg 68 ? investing for me?
17th ANNIVERSARY ISSUE
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AUGUST 2015 Why do I
December 2015
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> > How much
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best way to
analyse a stock?
`50
OCTOBER 2015 When should
?
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I exit a fund?
ANSWERS
Insurance portability pg 58 Safekeeping financial records pg 36
H E A LT H T RAV E L
GADGETS
LIFE THAT WILL
CHANGE
50
ACCIDENT
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PROTECTING start saving for do I need to start
YOURSELF
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& PROVIDING
FOR YOUR
? YOUR
FINA NCIAL
LOVED ONES
?
LIFE
Making insurance Financial Nirvana!
Every generation has its own template
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to achieve financial freedom. What’s investments safe?
WORK for YOU

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Book Review
TAkIng off The BlInders

The sIlo effecT: Why puTTIng everyThIng In ITs plAce Isn’T A BrIghT IdeA
e
very Indian will be able to relate Publisher
to the word silo. Our society is Author HacHeTTe india
well categorised across all forms Gillian TeTT Price
thinkable for one to know what silo is all
about. Gillian Tett’s book is particularly
`599
useful because she deals with silos in new,
refreshing and creative ways. Tett is an something we have to live with.
anthropologist by training and has used So what do you do to avoid the
the examples of interesting people like silo effect? At Facebook, Microsoft is
a start-up mogul turned police officer or considered the great horror—a once-
a dyslexic physician who sees the world dynamic innovator turned laggard by its
through unusual mental lenses. She goes silo operations. Consequently, Facebook
on to narrate how these people had an employees are rotated around projects,
uncanny ability to view a previously vexing urged to switch teams and given new
problem from a new perspective. challenges. The corporate culture is
Tett clarifies early on that the word ‘silo’ reinforced with group activities and
does not just refer to a physical structure slogans printed on posters: ‘Move fast,
or organisation but can also be a state break things!’ or ‘Done is better than
of mind. Silos exist in structures. But data, finance, public health, or other perfect!’ Where the book disappoints
they exist in our minds and social groups, examples she raises. Whatever your field, is the lack of data, tables and graphs.
too. The book is filled with implications her conclusions about the fact that new Overall, it manages to kindle your
for readers who aren’t interested in big ideas typically are introduced by outliers is thoughts into functioning out of silos.
All-WeATher AdvIce
A WeAlTh of common sense: Why sImplIcITy Trumps complexITy
A
fter reading this book, you may Publisher
ask yourself if there was really Author Wiley india
anything new in it. Ben carlson Price
In some ways it is a compilation of
things written by a number of writers—
`499
control your emotions, have a long-term
outlook, don’t try to beat the market, do myths, including ‘stocks are riskier
your research, diversify, rebalance, asset than bonds’, ‘commodities are a good
allocation, and so on. But, the manner in long-term investment’ and ‘housing is a
which all this is presented is where Ben good long-term investment’. In defying
Carlson differs. the last myth he insists that one should
He has elegantly documented wisdom think of housing as more of an asset
on how to become a wealth-building that forces you to build equity over time
investor—not an extraordinary investor, than an investment, which is likely to
not one who tries to compete with the compound your savings.
professionals at their own game, but an Carlson’s key insight—simplicity
investor who finds his edge in simplicity, trumps complexity—is powerful on
patience, discipline and a focus on the many levels and has numerous practical
long-run. He is not saying, for instance, perfect portfolio, except in hindsight. applications. In many ways, he has taken
that value trumps growth or that There are a few interesting sugges- behavioural finance, synthesized the key
passive mutual funds are preferable tions that can be used by everyone. For learning points and compiled them in an
to actively managed funds. There’s no instance, Carlson exposes 13 market easy-to-read book.

lessons In hAppIness
QuoTe me If you cAn: dAIly ThoughTs for hAppIness AT Work
I
t is very rare to hear people confess Publisher
love for their job or mention that they Author PenGuin india
are happy at their place of work. This n.s. rajan Price
should be a matter of concern given that
our job consumes an enormous amount
`299
of our time. That is why it is imperative to
instruct ourselves to be cheerful at that it elucidates a plethora of topics
our workplace. like leadership, organisation and people
Quote Me If You Can by N.S. Rajan, chief management in a few short sentences,
human resources officer at the Tata Group, making them simple and easy to
is a collection of thought-provoking comprehend, and allowing readers
quotes, two for every day of the year, that to internalise at each level. There are
move the mind away from negativity and so many lessons that go beyond the
force you to turn the misery ship around workspace and coerce the readers to
and find elation at your workplace. hope for a happier, more fulfilling future.
According to Rajan, there are certain When asked about his thoughts on
aspects that one must keep in mind to the younger generation, Rajan claims
ensure happiness and joy in your vocation. that the youth of today have the poise
“Firstly, before joining any organisation and the opportunities to map their own
or a startup, you must be in a position should look at the team that you will be career and future. “I have a lot of respect
to have a shared vision that can bring working with and ask yourself whether for younger generation. They have a free
the idea to reality to create sustainable you see a team where you feel a sense of mind and are more open to challenges
outcomes. Secondly, there should be belonging,” he says. and risks that encourage them to think
a nobility of purpose. And, thirdly, you One of the best facets of this book is beyond mere constancy and security,”
he says. Rajan also adds that in order to
succeed, one should always desire more
excerpts: than what one deserves.
“Make two promises to yourself before you start your career: Rajan’s book strikes a chord with most
earn more than you can spend and offer more help than you people, who have held a job at some
seek. Keep them till you retire.” point, and anyone who has searched for
ways to find bliss at work. His thoughts
“Some have so much foresight, they live in the future.” leads you to believe the possibility of
living a happy and successful life, and may
“If one had to wait for all the answers, this world of ours provide a practical solution for leading a
would be bereft of entrepreneurs.” satisfied work life to some .
Rajan, tracing his three decades of work
“Leaders make different choices; some fight for their slice and experience in reputed companies like
some create an all-new cake.” Ernst & Young (E&Y), Asian Paints and
Ranbaxy, has attempted to make the
“Networking, like a fixed deposit, earns steady returns and concept of ‘happiness at work’ feasible
when you overdraw, the principal gets depleted.” and realisable. The book is worth a
read, especially for professionals and
“If you don’t wish to fail, learn never to wish for success.” youngsters who want to make the leap
from being a corporate prisoner to an
“There are two kinds of jobs: the nice ones and what you end accomplished human being.
up getting.” Rajan’s quotes are uplifting, allow you
to shed inhibitions and inspire confidence
“Higher education, at times, makes people overestimate their so that the next time you are asked how
competence and underestimate their need for experience.” was work, you answer with a smile and
without a sigh.

Travel
In nature’s Lap
Birding in Lansdowne led to the discovery of 10 different species of
uncommon birds in a span of ten minutes, recounts Kamal Kant
76 Outlook Money September 2015 www.outlookmoney.com

A few architectural sites include
the St. Mary’s Church and the St.
John’s Church, which date back to
around 100 years. The army
museum is also worth a visit.
In another interesting experience,
I walked around 4 km to a nearby
village along the motorable road.
The locals here burn dried leaves
and the fire moves in small flames
1 2 forming a rhythmic line as they
move ahead. The smoke climbs high
I
t’s all possible in one place. and can be seen from a distance. I
You don’t need to go to a also spotted a number of birds here,
birdwatching point or site— who I could see through my binocu-
colours are spread all over lars but the distance was too much
the place. Call them flying colours. to click pictures.
Wondering where I was wandering? Though the scope for activities is
It’s a famous place (although not much in this place, it is an ideal
not familiar to all tourists) called location to enjoy nature. All you
Lansdowne in Uttarakhand. need to do is sit in a quiet place,
Strolling around the place one can rather any place, and enjoy the 180
see not only nice hillscapes with degree view, 360 degree at places.
lush greenery, but that most of the 3 For trekkers, it’s an interesting
trees in the area are name-tagged place but not very adventurous.
with the species they belong to. I got For everyone it holds a different
to know about several species that I experience—for me, it was to walk
came across. around the place randomly.
It doesn’t have too many vantage Lansdowne is charming from ev-
points, but there is lots to see here. ery aspect. The tranquil atmosphere
One can enjoy sunrise or sunset transfers you to another world. If
from most of the places while taking you want to avoid crowds, this is
a walk. There’s also a touristy spot the ideal place. Very few tourists
called the Sunset Point. On the way frequent this spot, which keeps it
to that place, we crossed the Tip and free from noise and pollution.
Top point, where I had a 360 degree Founded and named after Lord
view of the surrounding hills includ- Lansdowne, the Viceroy of India
ing a mountain range. Near the 4 during 1888-1894, this hill station
Sunset Point is the Santoshi Mata
Temple. Climbing up the temple
steps took me to a calm place. Other
than the religious aspect, it offers a
panoramic view of the mountains.
Another interesting place in the
area is Bhulla Tal (Lake). It’s an
artificial lake, made just for fun.
The lake will give you a nice boating
experience. The place is decorated
with a beautiful garden around it.
While strolling around the lake, I
came across a wide variety of bird 5 6
species including the elusive wood- Left: Landscape around Lansdowne; From the top (as spotted in Lansdowne): 1. Sparrow;
pecker. Also, it’s a wonderful place 2. Purple sapphire butterfly; 3. Fork-tailed drongo; 4. Colourful native bird; 5. Plum-headed
to spot butterflies. sparrow; 6. Whistling thrush near Bhulla Tal

Travel
7. Boating in Bhulla Tal artificial lake; 8. A temple near Lansdowne; 9. The 110-year-old
8 St. Mary’s church built during the British era; 10. Mesmerising sunrise on a morning stroll
How to reacH
By Train: Two trains run from
Delhi to Kotdwar (the
Mussoorie Express and the
Garhwal Express). Kotdwar is
about 45 km from Lansdowne
By Road: You can take a bus

from Haridwar to Kotdwara
By Air: The nearest airport is

Jolly Grant Airport, near
Dehradun, which is 150 km 10
from Lansdowne
was developed by the British for Post snowfall, peep out the
The other and better route
to reach Lansdowne is from
catering to the recruits training beautiful snow-laden peaks of the
Delhi via Meerut, Bijnore, centre of the Garhwal Rifles. It is still Himalayan range. At other times,
Najibabad, Kotdwar, and on an army cantonment area. the greenery plays its role. This
to Lansdowne. Lansdowne The weather in Lansdowne is place deserves to be admired all
is around 81 km from Pauri pleasant all round the year, except through the year, with a different
and about 250 km from Delhi, for winters. Winters are extreme, flair in every season.
travelling by road. and sightseeing gets a bit tough as
the temperatures are too low. The writer is an avid bird watcher.

Announcingthe
AnnualOutlook
MoneyAwards
For over a decade, Outlook
Money Awards have served as
a widely respected benchmark
for recognising excellence in
the financial services sector for
demonstrated leadership and
value creation in the delivery of
superior products and services to
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This year’s awards include a reorganisation of
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Insurers of the Year Capital Market service Provider of the Year
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Smart Money
Benefits of an Aadhaar enabled

bank account
9 1
8 Aided by an asha School payments

worker 2
Antenatal care
Merit scholarship
7 schemes
Pension payments
6 Life and health
4
Insurance
5
Streamlined
Housing schemes delivery of
Wages/Salary
subsidies
Before KYC
Process
After
Photocopy Originals
ID proof Enter Aadhaar number and provide
verified at bank/
document fingerprint/one-time password (OTP)
service point
Request sent to Aadhaar server. If

Photocopy Bank/telcos create fingerprint/OTP match, server returns
address proof digital records and person’s details
document verify again
Data verification is instant for
Send someone to immediate activation
Self-attest
verify address and
copies
other details
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Long verfication Verfication cost is Verfication takes Low verfication cost,

process high (`50-200) a few seconds can reach the poor
Source: Rebooting India: Realizing a billion aspirations by Nandan Nilekani and Viral Shah
RNI NO. DELENG/2002/8292

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Expert Speak: Nilesh Shah pg 30 My Plan: Getting methodical pg 68

Your guide to efficient tax planning

So what do I do with my money?

Speak to your investment advisor or visit dspblackrock.com/bal

Cover design: praveen kumar .g

www.outlookmoney.com December 2015 Outlook Money 5

35 Insurance made easy

pg Insuring your start-up

82 86 Book review 88 Travel

6 Outlook Money December 2015 www.outlookmoney.com

Cost To Country (CTC)

8 Outlook Money December 2015 www.outlookmoney.com

10 Outlook Money December 2015 www.outlookmoney.com

Editor’s reply My plan

12 Outlook Money December 2015 www.outlookmoney.com

Siddharth raman, Bengaluru

i was a non-smoker when

14 Outlook Money December 2015 www.outlookmoney.com

HimansHu soni, Mumbai

16 Outlook Money December 2015 www.outlookmoney.com

insurance under which the owner of

Keerthi Das, Delhi

Returns (%) KulDeep singh, Bengaluru

18 Outlook Money December 2015 www.outlookmoney.com

Visit our nearest branch for further details

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www.outlookmoney.com December 2015 Outlook Money 21

‘Batua’ app Street talk

22 Outlook Money December 2015 www.outlookmoney.com

Consumer Fund, Tata Digital India

Seeding ideas Fund, Tata India Pharma &

choice by combining exposure to

24 Outlook Money December 2015 www.outlookmoney.com

G.V. NaGeSwara rao

www.outlookmoney.com December 2015 Outlook Money 25

‘Investors need a plan

26 Outlook Money December 2015 www.outlookmoney.com

sites, making it a perfect destination

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2 3 6 82.31 % Indira Nagar (`2,779-`4,011 per sq.

Booming mega-city ists are queuing up to invest here.

www.outlookmoney.com December 2015 Outlook Money 29

Equity investors should let experts manage their money

30 Outlook Money December 2015 www.outlookmoney.com

GRUH Finance Why buy

Niche focus pays off n Strong parentage of HDFC along with

segments offering ample opportunity for Watch out for

FY14 845.69 FY14 176.96

400 OP (` crore) EPS (`)

FY13 603.20 FY13 5.61

32 Outlook Money December 2015 www.outlookmoney.com

Event partners Industry partner

December 16, 2015 India Habitat Centre, New Delhi

Session II: Technology – Transforming distribution

For more details contact: Prashant Kapoor; prashant@outlookindia.com; M: 9320405610

Reassessing life insurance

taking on liabilities. Make continue a policy so that

one-time decision to buy

Liabilities: While buying a

when your income goes doing so with a loan is

www.outlookmoney.com December 2015 Outlook Money 35

By: Anagh Pal, Himali Patel,

40 Outlook Money December 2015 www.outlookmoney.com