NPS Scheme Gets a Makeover

Implementation of the Direct Tax Code could make NPS far more attractive as maturity amounts won't be taxed in investors' hands. Read the story on NPS and its acceptibility so far.

For the original link, click on http://www.thehindubusinessline.com/features/investment-world/money-wise/new-pension-scheme-gets-a-makeover/article4178591.ece

Restrictions to dampen Rajiv Equity Scheme's Benefits

Rajiv Gandhi Equity Savings Scheme, no doubt is a new toy to play with, but does it have the appetite to attract investors' interests? Read the full article on http://www.tribuneindia.com/2012/20121001/biz.htm#2  published in The Tribune, a leading daily from Delhi and other North India states

Liquid Funds, A Parking Ground for Savings

Why settle for less, if you are getting more? Invest your surplus money in Liquid Funds and earn extra bps on your hard earned money..Article published in The Hindu Business Line, Aug 18, 2012.

http://www.thehindubusinessline.com/features/investment-world/mutual-funds/article3791909.ece

Hyderabad, the City of Pearls runs for a better tomorrow

 Pleasing weather, cloudy sky, and intermittent rain showers… what could be better than these for a long run? The city ruled by Nizams and Mughals boast of many historical events which are still alive in the eyes of many Indians. Yes, I am talking about Hyderabad and the marathon held here on a beautiful Sunday on Aug 26, 2012. The city had second consecutive Marathon sponsored by Air Tel and powered by Hyderabad Runners, a group dedicated to run and run.

For me, running was not a regular stuff and I avoided it on all occasions unless I felt my body required it. The grand annual Marathon in Mumbai inspired me to walk first in year (2010), walk again (2011) and run in 2012. And the running lasted till I covered 21.09 km despite the crimped knees and thighs. And since then, it continued so long that I landed in Hyderabad in 2012 to participate in its second edition of Airtel Hyderabad Marathon 2012. The cheering and supporting fellow runners, cloudy weather ending into a rainfall and energy drinks at every 2 kms helped in keeping the pace unless I touched the finish line. The finishing area, GMC Balayogi Stadium, named after the late speaker of Lok Sabha happened to be the spectacular multi cross-legged steel and RCC structure still standing like a new class waiting for the next round of new students. The hilly terrain including many flyovers made the journey little tiring but the uncalled rain showers cheered many runners to their rescue of high altitudes. Somehow, I finished my half marathon of 21.07 kms in 2 hours 52 minutes; however, my GPS locator indicated 21.41 km in 2 hours, 49 minutes and 41 seconds. I admit that I didn’t practice for the run seriously but my regular outings including of trekking helped my mental clock ticking. Last but not least, I would like to mention that the enthusiasm had not been alive till I didn’t get the cause running with me, the cause to ‘Promote Education’ under the umbrella of “Umang Foundation”.

Hyderabad appeared a far better place than my imagination; though I didn’t visit Old Hyderabad. The aromas of Biryani couldn’t stop me eating the delicious Biryani from the famous and historical food court, Paradise. I visited my old friends who happened to enjoy the Biryani’s aroma daily. Hyderabad, wait, and here I come next year. But before that I need to finish many more marathons in India.

Keep Running and Be Healthy!

Tax Benefits of Education Loan

Do take education loan but don't default as it may kill your future prospects of loan. My column in Hindu Business Line on "Tax Benefits of Education Loan"

Dhanvantri, the God of Health smiled in India

Finally ‘Dhanvantri’ acted which aims to bring smile on the faces of billion of Indians who are exhausted with the current practices going in the unorganized and cramped health system. This time, IRDA, the current Dhanvantri was under no mood to relent despite some unhappiness shown by some general insurers.

Life Insurance industry has long been under sharp attack as the product easily favoured distributors, a win-win situation for manufacturers and distributors. This is very recent that IRDA awoke and has been cleaning the rotten system, starting with the ban of Highest NAV guaranteed ULIPs. Similarly, general insurance especially health are under sharp attack from all participants except insurers due to unfriendliness posed to policy holders during the emergency time.

Last week, IRDA released the draft paper of Health Insurance Regulations 2012 to protect health insurance policy holders’ interest which aimed to bring transparency in the monopolistic system.  Among the most noted, any person up to the age of 65 years would be able to buy health insurance which may continue as long as the person remains alive and he renews it continuously without a break. Even more, the insurer or TPA needs to settle the claim process within 30 days without fail. If the claim is rejected, it should be properly reasoned in writing. Currently there is no defined settlement time bound and every insurer takes its own comfort in settling claims.

The draft also talks about the portability of existing health policy to another health insurance company without losing any benefit; this must happen at least 45 days before the premium renewal date of existing policy. Imagine you would have a choice to select your favorite health insurance provided! J

In 2010, four major public insurers which command over 60 per cent of total market had removed private hospitals from their preferred list citing overcharging by these hospitals under the cashless scheme. Now, all health insurers shall provide the cashless services at a hospital no longer covered under the preferred network list. “For the purpose of claim settlement, insurer shall make direct payments to the network provider and to the policyholders by integrating their banking system with the network provider or the insured, as the case may be,” the draft said.

Further, the claimant would have the right to make the optimum use of the multiple policies. Until now, claimants had to split between the two or more insurers in the ratio of sum assured. This would largely benefit the working population who are provided health insurance benefits by their employers and are forced to split in case a claim occurs. Also, there won’t be nasty surprises on hefty premiums as insurers would have to justify it on the basis of the preceding three years’ claims experience, projected claims experience.

The draft also spoke about providing coverage to non-allopathic treatments undergone in a government hospital or in any government recognized institute and/or accredited by suitable institutions. It also talked about a combi product, “Health plus life” which would be a combination of Pure Term Life Insurance cover offered by Life Insurance companies and Health Insurance cover offered by non-life insurance companies.

The draft rightly flowed in the direction desired in the larger interests of policy holders; now the onus lies how quickly it gets fixed. India would await a new and customer friendly health platform.

Be insured healthily!

Assign 20-30% of your portfolio to alternative assets

Adding alternate assets to the portfolio can do wonders in the portfolio in all market conditions; my column in The Economic Times, Dated Jun 07, 2012

Original link to the article: http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/assign-20-30-of-your-portfolio-to-alternative-assets-amar-ranu-motilal-oswal-wealth-management/articleshow/13876031.cms

Cash is not king for Mutual Fund Schemes

Self-featured article in Business Standard on "Cash is not king for Schemes"; Holding more than 10% in cash for too long  may hurt returns and increase chances of missing a rally.

Source Link: http://www.business-standard.com/india/news/cash-is-not-king-for-schemes-/474186/
Happy Reading!

Investing with noble intent

Featured article in The Hindu Business Line on IMPACT INVESTING; Investing with a noble intent

Original link to the article: http://www.thehindubusinessline.com/features/investment-world/market-strategy/article3364563.ece

Money Minder - Life and Prospects of a Wealth Manager

Money Minder - Life and Prospects of a Wealth Manager (Source: HIndustan Times)

 The lowdown

Wealth management is a service that provides customised investment solutions to clients. It is a discipline that includes financial planning and investment portfolio management. High networth individuals (HNWIs) and business families may seek the advice of wealth managers to assist them in estate planning, banking and tax-related matters. India is on the trajectory of becoming a new world player that will host the highest number of millionaires. As per the Wealth Report 2012 by Knight Frank and Citi, there are around 18,000 centa-millionaires (with US$100 million in disposable assets) in the region covering South-East Asia, China and Japan that will eventually increase to 26,000 by 2016. India will constitute a major portion of this which implies that wealth management does have a promising future. Wealth management as an industry is largely dependent on the financial health of a country. However, the industry has seen an increased appetite for alternate assets such as real estate and gold that has helped it to sail smoothly. A good wealth manager is one who is able to help clients’ reap profits even in a turbulent market.

Clockwork

The day begins in the morning, around 8 a.m. and usually there are no fixed timings. A typical day in the life of a wealth manager:

8 am: Reach office

9 am: Morning meeting to discuss the agenda of the day

Noon: Brief team members; prepare a report

8 pm: Leave for home

The payoff

The scale depends upon the profile; fresh post graduates can earn in the range of Rs. 4 lakh per annum to Rs. 6 lakh per annum, which goes up as one scales up the ladder. Great potential in terms of remuneration  as it is directly proportional to the business that one drives and one’s ability to assist clients in wealth creation.

Skills/Traits

·         Aptitude to handle HNI clients; these clients are very demanding in terms of service and good relations

·         Top-of-the line communication skills

·         Well-versed with different sets of wealth products — mutual funds, private equity, structured product/deals, real estate (private equity), portfolio management services, arbitrage strategies etc

·         Should have the ability to handle difficult situations and be a troubleshooter

Getting there

After completing Class 12 in the commerce stream, opt for a bachelor’s degree in business studies or business administration. Bachelor of financial and investment analysis is another course you can pursue. A wealth manager must have good command over the products and happenings in the industry; he should also have great communication skills. A fresh graduate can enter the industry directly but it is always better to have a professional degree before entering the industry. Some courses related to wealth management can also help  in gaining expertise in the field.

Institutes and URLs

In India, there is no established wealth management institute; Financial Planning Standards Board India, which offers CFPs is  confined to financial planning. However, the Association of International Wealth Management (AIWM), recently set up its office in India, through an Indian intermediary, AIWM India which offers training cum certification in India. The course is relative and focuses completely on wealth management. There is also another global course, CAIA which can be a good learning point from an alternate assets perspective

* Association of International Wealth Management Indiahttp://aiwmindia.com

* Financial Planning Standards Board, Mumbaihttp://www.fpsbindia.org/

Pros and Cons

·         Extremely challenging and intellectually stimulating job

·         Money is good

·         As a wealth manager, you must be extremely passionate about your work, clients and services

·         The job involves networking skills with the high networth individuals 

·         High-pressure job

·         Involves long hours

·         Excessive competition

A wealth manager helps clients allocate assets and suggests the right product depending upon the risk profile. He also assists clients in estate planning which has now become a rage

- Amar Ranu, senior manager, Motilal Oswal Wealth Management, Mumbai

Source: Hindustan Times, Delhi Edition, Dated - April 24, 2012

Link: http://www.hindustantimes.com/HTEducation/Chunk-HT-UI-HTEducationSectionPage-GreatCareers/Money-minder/SP-Article1-845339.aspx

Avoid Delays - Post Budget Analysis on Real Estate

Self Authored article in Times Property, a Times of India Publication dated Mar 31, 2012

Are Structured Products needed?

Self Authored article in The Hindu Business Line

Happy Investing!

Dual Benefits - Investing in a Second Home

Self Authored article in Times Property, Times of India Publication dated Jan 07, 2012